December 1, 2019 News

Carlauren care homes group placed into administration

Crowell & Moring’s London Restructuring team, led by Cathryn Williams and Paul Muscutt, has successfully applied to the Insolvency and Companies Court to put the parent companies of the Carlauren Group into administration.

Crowell & Moring made the applications to the Insolvency and Companies Court, on behalf of Carl Jackson and Simon Bonney of Quantuma LLP, as a result of concerns that the scheme operated by Carlauren had been mis-sold to investors after large amounts of monies invested were unaccounted for and the majority of the properties purchased were not developed and remain derelict.

Crowell & Moring will continue to act for the joint administrators, Quantuma LLP and Duff & Phelps LLP, as they now take control of all 35 companies in the group with a view to investigating its affairs and maximising returns to creditors and investors.

Carlauren raised over £76m from investors but property assets of only around £25m are in the group, comprising in the most part derelict properties requiring significant refurbishment and planning permission to get them up and running. Meanwhile, the group’s principal director and shareholder Mr. Sean Murray had acquired private jets, luxury yachts and high-end cars through the companies using investor monies.

Carlauren bought 25 properties across the UK including Windlestone Hall, near Bishop Auckland, County Durham, which it acquired for £850,000 in 2017. The scheme was funded by selling individual rooms in those properties to investors for about £100,000 a time, but most of those homes never opened.

Paul Muscutt, partner at Crowell & Moring, comments:
“We welcome the ruling of the Insolvency and Companies Court. This is a very good result for the investors and creditors who have seen their funds misappropriated. Thanks to this judgment, the joint administrators are now in a position to manage the Carlauren Group in the best interests of all parties concerned.”

About

We speak up for the independent sector. All news articles are published by editor Viv Shepherd.

Read more posts by Viv