Hotel’s parent company collapses owing £113m
help them finish the delayed development, although this money was never paid to the company. Meanwhile, the company that operates the Exchange Hotel in the building is still operating.
Last week, Councillor Mary McGarry asked about the Coal Exchange and the financial risk at a full council meeting.
Cllr McGarry said: “I wanted to ask for clarity on who actually owns the Coal Exchange and whether the council risks losing any money because of the company going into administration.”
Cllr Russell Goodway, cabinet member for investment and development, said: “The company having gone into administration creates a fairly sensitive situation, where we need to respect commercial confidentiality in order to protect the interests of the many parties which have an interest in that business.
“The council is working closely with the administrators and other secured creditors, and the council is itself a secured creditor, to understand the administrators plans.”
WalesOnline has reported for some time complaints from people who have invested in Signature schemes with the promise of significant returns – with many telling us they have not been paid back.
The administration report states: “Historically the company has been subject to various creditor enforcement actions for non-payment of amounts owed and demanded. These actions have previously been settled to the conclusion of the enforcement proceedings.”
The report states: “At present, it is too early to provide creditors with anticipated dividend prospects. A further update will be provided in the next report to creditors.”
The first of the Signature Living groups to fall into administration was the Shankly Hotel in Liverpool, which collapsed on April 16, just weeks after the nationwide lockdown was announced.
This has been followed by the individual companies covering hotels like 30 James Street in Liverpool, the Coal Exchange in Cardiff and Belfast’s George Best Hotel as well as residential developments like 60 Old Hall Street in Liverpool.
These assets are now being handled by a range of different administrators.