23rd March 2009

Mountgrange Capital considers funding options

The Directors of Mountgrange Capital have appointed Deloitte to act as administrators for the company, together with a number of its subsidiaries including entities controlling schemes in Edinburgh (Caltongate); Linwood (Pheonix Park) and Maidstone (Springfield Park). The Directors have decided to pursue this route in order to allow them sufficient time to explore alternative funding options for the above developments.

The problems surrounding the UK property industry in the current financial environment have been well-documented. Mountgrange Capital has not been exempt from these pressures. The industry's current problems have been further exacerbrated by the scale of banks' exposure to commercial property lending. And UK banks now seem to be significantly scaling back their involvement in the sector.

Martin Myers and Manish Chande confirmed

"We believe that these schemes continue to have commercial merit. Despite our best efforts, continued funding from existing banking channels is no longer a feasible option. We are, therefore, examining other alternatives including making an offer to buy the assets out of administration and are uniquely placed to do so".

Enquiries

Howard Lee

T: 020 7367 5225 M: 07836 785 993

E: hlee@headlandconsultancy.co.uk

 

Mark Cummings (for Scotland)

T: 0131 220 0159 M: 07947 362 970

E: mark.cummings@invictapa.co.uk