Multi-million pound debts owed to investors in three North Wales hotels have come to light.
Gavin Woodhouse’s Northern Powerhouse Development (NPD) company has purchased four hotels in North Wales as part of a portfolio of nine in the UK.
But an investigation was opened into the company in July after insolvency and restructuring experts Duff & Phelps were appointed by court order as acting directors of the company.
The Caer Rhun Hall hotels in Conwy Valley, Llandudno Bay Hotel, Queens Hotel and The Belmont Hotel in Llandudno then collapsed under administration.
They went on sale last week and all continue to trade normally.
Now reports from the directors of three of the hotels have been released, showing the huge debts owed to the investors.
For Caer Rhun Hall Hotel Ltd, which owns full ownership, there is £ 7.5million owed in ‘investor buyout arrangements’ and an additional £ 179,000 to trade creditors and £ 739,000 to HMRC.
Despite hopes of funds coming from the sale of Caer Rhun – valued at £ 1.95million – investors are unlikely to receive more than a small portion of their investment.
North Wales Asset Finance (NWAF) has fixed and floating charges on the assets of the company and owes £ 1.1million which it is expected to recover in full.
Added to this is the debt of Caer Rhun Hotel Management Ltd, which operated the site. Here £ 757,000 is owed to commercial creditors.
With the Queens Hotel (Llandudno) Ltd there is a debt of £ 4.7million to investors, £ 22,000 to trade creditors and £ 491,000 to HMRC. Again, investors are unlikely to recover more than a small portion of the funds.
Mysing Capital has fixed and floating charges and is expected to recover the £ 1.8million owed to it – the hotel is on sale for £ 2.25million.
Queens Hotel (Llandudno) Management Ltd has additional debts of £ 654,000 to commercial creditors.
Figures from Llandudno Bay Hotel and Spa Ltd show £ 4.2million owed to investors, £ 25,000 to trade creditors and £ 80,000 to HMRC.
Mysing Capital has fixed and floating fees and owes £ 1.8million. The site is on sale for £ 1.95m.
LBHS Management Ltd, which operated the site, owes £ 486,000 to commercial creditors and £ 175,000 to HMRC.
This leaves a total of over £ 16million owed to investors and over £ 2million to trade creditors.
The Serious Fraud Office has previously said it is also considering opening an investigation. They said this week that there had been no update.
Representatives for Mr Woodhouse have always said he would comment once legal proceedings are over.