A DEVELOPER which left a West Somerset housing estate half-finished was put into administration with debts of more than £36 million to avoid it being wound up in the High Court.

Stratton Land Ltd, whose sole director was Sebastian Arbis, had a winding up order served on it last December with the petition due to be heard in April of this year.

But creditor Jardine Norton Capital C Ltd moved to appoint administrators Oliver Collinge and James Sleight, of PKF Littlejohn Advisory Ltd, a day before the court hearing.

Stratton was building 71 affordable homes on an ‘Exmoor Gate’ development to the south of the A39 Hopcott Road, in Minehead, after acquiring the site in June, 2019.

The firm also bought the now-empty former Wansbrough paper mill site in Watchet, where it was allowed to store soil excavated in the Minehead development.

In early 2023, the then-Somerset West and Taunton Council excused the firm from paying £300,000 toward local community facilities after it pleaded the development was in danger of becoming unviable due to rising costs, including the expense of transporting topsoil to Watchet.

Mr Collinge said in a progress report he was not yet able to provide a commentary on the reasons for Stratton’s failure.

However, Mr Collinge said: “We understand the company was predominantly funded by various third party lenders, a number of whom were granted security over the company and its assets.

“We understand the company began to experience cash flow difficulties, and as a result the director began discussions to find a buyer for the company so it could complete outstanding contractual work and site purchases.

“It is understood that a potential buyer was found and sale negotiations had reached an advanced stage, however, no sale was ultimately completed.”

Mr Collinge said from early investigations it did not appear there would be any money to pay out to unsecured creditors.

He said the company’s assets would be realised and a distribution made to preferential or secured creditors.

It was currently uncertain whether sufficient funds would be available to enable any distribution to floating charge holders.

Mr Collinge said Stratton had effectively ceased to trade before the appointment of administrators and given its assets and liabilities position, he did not believe there was any prospect of the company being returned to going concern status.

He said an assessment of the company’s assets showed it did not own any plant or machinery, all of its motor vehicles were subject to finance and in the process of being collected by the relevant companies, and the cost of seizing and selling computer and office equipment would be more than the income raised from it.

Mr Collinge said part of his normal duties as an administrator was to consider the conduct of company directors in the previous three years preceding the administration and to investigate the affairs of the company in general to decide if any civil proceedings should be taken.

He said he would be pleased to receive any information which might help with those duties.