A winding-up order from Leeds city council has prompted the appointment of receivers to a Montpellier Estates portfolio.
Allsop was appointed joint fixed-charge receiver over land and properties owned by Montpellier, including its flagship City One site in Holbeck, Leeds, and its head office in Cold Bath Road, Harrogate.
In February, Montpellier lost a £43.5m high court damages claim against Leeds council over its failed bid to develop the 13,500-seat Leeds Arena. The judge then ordered Montpellier to pay the council £2m following a case he said “should never have been brought” to court.
The developer lodged an appeal against the damages claim, after which the council issued a winding-up petition against the company.
BTG Financial Consulting, adviser to Montpellier, said the firm’s largest creditor, Royal Bank of Scotland, then appointed receivers to “protect its position” following the winding-up petition.
BTG partner Mark Fry said: “It is an unfortunate outcome. Montpellier was in discussion with both the bank and the council in relation to a financial restructuring aimed at paying the council in full the costs ultimately awarded.
“The presentation by the council of a winding-up petition brought an end to these discussions.”
He added that unsecured creditors, including the council, would be unlikely to see any return.
Nick.Whitten@estatesgazette.com
