According to the London Gazette administrators RSM Restructuring Advisory LLP were appointed on Friday 12th August to oversee the affairs of struggling Canterbury based Cardy Construction Ltd. Their priority will be to be try generate enough money through sales of assets etc. to pay off the company’s creditors – an amount rumoured to be over £1million. The administrators are required to produce a report detailing the debts owed by the company and how much creditors are likely to be paid within the next six week or so. This report will be published on the Companies House website.In a separate development Cardy Construction’s sister company Cardy Healthcare Limited is almost a month overdue in submitting its annual confirmation statement to Companies House. Is this delay a sign of yet further troubles for the struggling Cardy Group?
Uncertainty about the future of the Cardy empire raises the question what next for the Ramsgate Pleasurama development? A spin off Cardy branded company, Cardy Ramsgate Limited, purchased the freehold of the Pleasurama site from Thanet Council in July for a reported £3million. An offshore Panamainian company Mintal Group Inc, believed to be owned by the funder of the previous Pleasurama developers Colin Hill, is thought to have lent Cardy Ramsgate the money to purchase the Pleasurama site. Documents published on the Companies House website show the that Mintal Group Inc has secured 2 charges against the freehold of the Pleasurama site in exchange for unspecified loans to Cardy Ramsgate.Cardy Ramsgate was set up in March 2015 and is controlled by Michael Stannard its sole director. Stannard is also a director of Cardy Construction Limited, Cardy Healthcare Limited, Cardy Design and Build Limited, Cardy Canterbury Limited and Cardy Group Holdings Limited. Although Cardy Ramsgate does not appear to be part of the Cardy group of companies questions must be asked about the behaviour of its director, Michael Stannard. On 20th July Stannard, in his capacity has the sole director of Cardy Ramsgate, signed the loan documents which gave the Mintal Group a charge on the freehold of the Ramsgate Pleasurama site. Within 5 days of these documents being signed Cardy Construction Limited (of whom Stannard is the managing director) announced that it was seeking administration and proceeded to lay off a reported 200 staff from sites across Kent and further afield.
So why did Stannard want to purchase a large plot of land using what appears to be money borrowed from an offshore Panamainian company, when he almost certainly knew that Cardy Construction, who would presumably have been asked to build the Pleasurama project, was facing insolvency. It simply doesn’t make sense to me. Not that I am suggesting any illegality, but something doesn’t smell right about these developments.