Blackwood’s Maes Manor Hotel was bought out of administration for £520,000, a new report by PriceWaterhouseCoopers (PwC) has revealed.
Manor Pursuits, the hotel’s original owner, went into administration in March this year.
Roger Hale and Matthew Hammond of PwC were appointed joint administrators by the company’s bank Barclays after Manor Pursuits owed it £1.65m.
According to the report, filed at Companies House by PwC, the hotel’s turnover had declined by around £500,000 from 2009 to 2013.
In November 2013 a potential investor was identified to enable the hotel to offer outdoor pursuits. However, after due diligence, the investor decided not to proceed.
Company director Jayne Lewis made a formal offer to Barclays for a full and final settlement but this was turned down by the bank.
In January 2014, HMRC issued a winding up petition for £140,000 it was owed.
As a result, Barclays froze the company’s banking facilities. In order for it to continue, Ms Lewis provided short-term funding for critical trading expenses.
The bank issued a demand for repayment on March 7 this year and on March 11, Ms Lewis invited the bank to appoint administrators.
The report reveals that Gwent Investments paid £520,000 to buy the business and assets of the company as a going concern, of which £495,000 was spent on acquiring the freehold property.
Companies House records show Gwent Investments is a newly incorporated business with Khloe Waite as its sole shareholder and director.
The transaction included the transfer of all employees and avoided the prospect of Manor Pursuits incurring sizeable costs from customers who would have had claims for breach of contract and lost deposits in the event of the hotel closing.
However, Manor Pursuits’ creditors are still facing a substantial shortfall.
Barclays, as the company’s sole secured creditor, was owed £1.65m but has been paid back £350,000. A further payment of around £110,000 is expected, leaving a final deficit of £1.2m. Unsecured creditor claims are estimated at £95,913 but it is expected that no money will be left over to pay them.
The Maes Manor hotel is situated in nine acres of terraced lawns and woodland on the northern outskirts of Blackwood.
The manor house itself was built in 1890. It has 28 ensuite bedrooms, the Seasons restaurant with 90 covers and the Islwyn suite with capacity for 220 guests.
Originally used as a private home, the building was later used as a hospital and a children’s home before becoming a luxury hotel.