An SPV (Special Purpose Vehicle) company linked to a Liverpool homes developer ceased trading according to reports in the Liverpool Echo.
The company, which was incorporated in 2017 to deliver a Liverpool city centre development for homes in Percy Place, former Council owned land acquired by Elliot Lawless of the Elliot Group, was placed into liquidation last month.
An SPV (Special Purpose Vehicle) company is common practice amongst property developers to attribute funding and costs individually through a limited liability company, in this case Percy Place Developments Limited, so as to shield the parent company from any issues that may impact one development, against a knock-on effect to other developments.
Liverpool homes developer ceases trading with £1.2m in debts
In the case of Percy Place Developments Limited, owned by Liverpool homes developer Elliot Lawless of the Elliot Group, whilst the Percy Place Developments SPV had significant debts, the largest creditor was Equity Group Limited, a company also controlled by Mr Lawless whom were owed £1.06m.
Liverpool homes developer, Percy Place Developments Limited also owed £15,000 to accountants Cobham-Murphy, £130,000 to HM Revenue and Customs and £50,508.03 to Lloyds Bank with liquidators Cowgill Holloway Business Recovery LLP appointed to oversee the matter.
The Liverpool Echo has extensively reported on Elliot Lawless and the Elliot Group and that the Liverpool homes developer and businessman Elliot Lawless was arrested on December 18, 2019 on suspicion of conspiracy to defraud, bribery and corruption. Mr Lawless has strenuously denied any wrongdoing and has successfully challenged the legality of the warrants used by police to search his home and office.
It should be noted that as at today (Dec 14th 2022), Mr Lawless has not been charged of any offence and is entitled, under law, to the presumption of innocence until proven otherwise.
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