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Administration threat looms over Egyptian Halls ground floor

July 6 2011

Administration threat looms over Egyptian Halls ground floor
Accountancy firm KPMG have served formal court papers to Derek Souter in relation to Personal Guarantees relating to a £2m loan made to Union Street Properties, which owns the Ground Floor.

Souter avers that he is likely to have an offer of re-finance available very soon but that there is now a “possibility” of the ground floor units (owned by USP) being placed in asministration.

The remainder of the property is owned by Union Street Investments, Souter’s sister company which, the developer vows, will collaborate with DBS-KPMG if and when they take it over.

Souter said: “The court action will be resisted vigorously and I'd surmise a claim for Damages will now also be launched against Dunfermline Building Society (DBS) in relation to their "alleged contractual breach" of the signed agreement.

"For the record DBS did enter Administration and in effect did go out of business and stopped lending despite having still in place a contractual agreement to lend and additional £2M to USP. For the record if the PG's are legally due, then they'll be paid!”


Hungry Horus
#1 Posted by Hungry Horus on 6 Jul 2011 at 14:13 PM
Methinks the Egyptian Halls need rescued from 'Soapy' Souter, and not by him.
#2 Posted by Alex on 6 Jul 2011 at 16:35 PM
'Chancer Up To His Neck In Chucky'

'Whit's five million quid compared tae the bluddy Embra trams?', asks cheapskate, 54.
David Brodie
#3 Posted by David Brodie on 8 Jul 2011 at 18:33 PM
The PG's amount to £300k and are circa £100k per investor, seems to be a tactical move by KPMG, which is being challenged but if due will surely be reconciled. And If KPMG called up the security, the Ground Floor and it's £11M deficit would be owned by HM Treasury! And what would SNP say about then?

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