Thu, 14 Mar 2013 | ADMINISTRATION
The majority of Opal Group, a total of 13 different companies, has entered administration due to problems in securing a funding structure.
The business covers over 7,000 student and professional tenants, providing accommodation for people in nine centres around the UK, including Liverpool, London, Leeds and Dundee. However, administrators have asserted that residents will not be affected; advance rents are secure; and the properties will continue to be fully serviced by managing agents.
Administrators from Ernst and Young - Sam Woodward, Alan Bloom and Tom Jack - have been appointed to manage the company's affairs for now. Mr Woodward, joint administrator from the accountancy firm, gave further details regarding the situation: “Following the expiry of facilities, the Companies and OCL have failed to agree an ongoing funding structure with its secured lenders. We are keen to stress that it is business as usual for the portfolio.
“Tenants should be assured that any rents paid in advance will be honoured by the administrators. The managing agents will continue to operate the properties and residents should continue to enjoy the accommodation and facilities on offer.”
Only 13 of Opal Group's companies are affected by the administration. Ocon Construction, which led the building of the Crown Place student accommodation development in Liverpool, has already been put into administration through another set of proceedings earlier this week and is not being included in this current situation. Meanwhile the remaining businesses are not affected by the administration at all.
Opal was founded around 25 years ago and has worked on numerous different projects from the design and construction of properties through to management and rental solutions.
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