Collapsed Kent-based construction group ‘may have’ used investor cash to hide losses

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Collapsed Kent-based operation and spot steadfast JVIP Group has been accused of utilizing investors’ currency to fell losses astatine associated companies.

Administrators person suggested that capitalist wealth enactment up to money circumstantial projects appears to person alternatively been utilized by the group’s directors to equilibrium the books of struggling associated companies.

In March, Tunbridge Wells-based JVIP Group was placed into administration. Nearly 20 companies associated with the steadfast besides filed for medication successful the months starring up to JVIP’s collapse.

Michael Chamberlain was appointed head implicit the genitor institution and astir of the associated companies. He has since filed an administrator’s report, which suggests capitalist wealth whitethorn person been misappropriated.

“Quite often, alternatively than backing circumstantial projects, it appears that the monies borrowed person been utilized to money overheads, involvement payments and redemptions crossed the associated companies,” said Chamberlain connected looking astatine the companies’ affairs.

The head added that capitalist wealth whitethorn person been backing “substantial losses implicit a sizeable play of time”.

The radical had been tally by begetter and lad Peter and Dick Dabner since 2014, on with household friend, Paul Bohill. It mostly worked successful existent property and lodging developments.

JVIP Group owed unsecured creditors £5.6m erstwhile it went into administration. This included 106 creditors, galore of whom were pension schemes.

The administrator’s study adds that “it became wide by the extremity of January 2022 that the companies had insufficient liquidity to proceed to trade, and the directors began to spot them into medication to support the assets and maximise the result for creditors”.

It adds: “The companies mislaid their accounting relation during the pandemic, arsenic good arsenic experiencing important disruption of banking facilities. This necessitated important transportation of funds betwixt companies.”

Delays to projects during the pandemic, arsenic a effect of rising worldly costs and supply-chain disruptions, pushed JVIP and related companies into punishment involvement rates, the study adds.

Before calling successful the administrators, the group’s directors and absorption were looking astatine options for refinancing from unsecured creditors, crowd-funding sources and an plus absorption company.

Administrators person besides raised questions astir a sum of £513,000 that was transferred from JVIP Group into Peter Dabner’s named account. He claims his relationship was utilized to “facilitate” the transportation of currency betwixt associated companies owed to limits connected the concern account. He has, however, yet to supply administrators with impervious of these transactions.

The JVIP Group was among 24 operation firms that went into medication successful March – a tiny dip from the 31 that collapsed successful the preceding month.

Construction News contacted the head and the group’s manager for comment, but had not heard backmost astatine the clip of publishing.