The main creditor of collapsed Preston developer Point Developments (North West) will not be able to recover all its cash, administrators have admitted.
Yorkshire Bank lent the firm’s directors £1.1 million so the business could acquire and develop Friargate Point in the town.
Outline planning permission to develop the site into a five-storey block with 43 flats and retail space was also obtained by Stephen Sayers and James Short.
But before the project could go ahead, administrators Begbies Traynor were appointed to Point Developments and Mr Sayers’ other business, the Dolphin Developments Group.
Insufficient amounts of cash will be raised to settle the Yorkshire Bank debt, the administrators said in a recently filed report.
Chartered surveyor Eddisons has been brought in to market the site, but no sale value has been disclosed over fears the information could prejudice a future deal.
They said if no interest is made in the site they will consider “either an immediate disposal at a reduced level via an auction or a medium-term holding strategy”.