High Court orders Winding-up of Land Banking Scheme Companies
August 06 2015
A winding up order has reportedly been proposed after the court heard how the land owner JDG Properties Ltd benefited by 100% from each plot of land mis-sold by a marketing company called Gilbert Webb Estates Ltd and how Tithebarn Trading Ltd encouraged those sales by appearing to be a developer of the site.
Winding-up Petition Proposed by High Court
Ms Registrar Barber reportedly proposed two winding up orders against JDG Properties Limited and Tithebarn Trading Ltd. JDG Properties Ltd traded under ‘Liverpool Investment Solutions’ and had bought land in Cheshunt, Hertfordshire connected with Mr Carl Ballard in April 2011 for £130,000. The company held onto a quarter of the land and split the remaining land into 390 plots for sale to the public. Gilbert Webb Estates Ltd and was ordered into liquidation on grounds of public interest on 18 December 2014 after the plots were marketed and sold to the public dishonestly. The development company Tithebarn Trading Ltd, who played the role of an interested developer, entered into 5 year option agreements for 50p with some investors buying back their plots of land at £52.43 per square foot amounting to a supposed overall site value of over £20 million.
Chris Mayhew, Company Investigations Supervisor reportedly had this to say:
“Whilst neither of Mr Elster’s companies was directly involved in the sale of plots of land to members of the public, they were symbiotic to the land banking scheme and fortified the mis-selling of plots of land by Gilbert Webb Estates Ltd enabling all involved in the scheme to profit apart from investors.
The scheme made no commercial sense and was once more calculated to part honest people from their money. The Insolvency Service will not allow companies to operate in this way and will investigate abuses and close down companies if they are found to be operating against the public interest”.
Winding-up Petition Solicitors
If you have received a winding up petition our legal experts are able to provide legal advice and representation. Our team of solicitors and barristers can obtain a court adjournment; CVA’s or successfully challenge the validity of the winding up petition to ensure that the petition is dismissed, often without public advertisement.
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