AMUSEMENTS: Dreamland creditors given 25p in the pound
Businesses owed money by Margate’s Dreamland amusement park will receive 25 per cent of what they are due.
Sands Heritage Ltd, which operates the park, went into administration last year and businesses that invested in the attraction were left unsure if they would ever get their money back.
A Company Voluntary Arrangement (CVA), which enables a company to agree how to pay debts, had been proposed.
“The proposal will see a return of approximately 25p in the pound to our pre-administration creditors,” said a spokesperson.
“The joint administrators did not believe that the other options open to them would have resulted in a material return of cash to creditors and, therefore, believe that this is the most beneficial outcome for creditors.”
The company went under with nearly £6m of unsecured debt.
A large chunk of that, £3.8m, lies with Arrow Grass, an offshore hedge fund, which loaned the operator money to make improvements at the park to get it ready for sale.
The remaining money is owed to third-party unsecured creditors, including investors, caterers, drinks and food companies, who operated in connection with Dreamland.
They will only recoup a total of £600,000, which after costs and expenses equates to 25p for every £1 invested.