Settlement brings liquidation to a close

Letham Grange Development Company (LGDC) bought Letham Grange for around £2 million in 1994.

It was then sold to Canadian-based company Nova Scotia Ltd – also controlled by Mr Liu – in 2001 for £248,100.

Another company under Mr Liu’s control, Foxworth, placed a security charge over the resort before LGDC liquidated in 2003.

Liquidator Matthew Henderson pursued legal action through the Court of Session attempting to prove the 2001 sale was fraudulent.

The liquidator obtained decree by default in 2009 when Nova Scotia Ltd failed to appear at court and then launched a separate legal bid to dispose of Foxworth’s standard security.

This action was defended on the basis that Letham Grange was sold for an adequate sum as it emerged that, as well as the purchase price, Nova Scotia also assumed debts of £1.85 million owed to Mr Liu and his family.

Various court rulings and appeals came down both in favour of both the liquidator and Mr Liu’s companies.

The case eventually reached the Supreme Court which, in 2014, ruled Foxworth, held a valid charge over the property.

The most recent court action saw Nova Scotia Ltd raise an action against PI Ltd, which had taken ownership of Letham Grange in 2011.

Last month both parties were ordered to appear at the Court of Session before Lord Pentland at which point it emerged a settlement had been reached.

PI Ltd has agreed to transfer the legal title to the property at Letham Grange to another company controlled by Mr Liu.

A spokesman for the liquidator said:

“As part of the settlement, title to the property at Letham Grange has passed to an entity associated with Nova Scotia 3052775 Limited, the Canadian company controlled by Mr Liu.

“PI Ltd acquired the property in 2011 under the terms of an option and funding agreement entered into in 2004.

“As there were no other assets in the liquidation the only prospect of a return to creditors lay with the recovery of the property.

“Now this matter has been concluded the liquidator will be bring the liquidation to a close shortly.”