A Norwich-based property developer,
brought bank from the brink of administration by four MPs recently
, is facing fresh threats after Lloyd Banking Group filed papers to begin the administrative process.
Talks have been taking place between the creditor and property group since spring, when a third – £700 million – of the overall debt owed to the bank expired.
According to the Financial Times, Targetfollow – which owns a large London property portfolio that includes the Centre Point Tower – has been trying to sell assets and acquire new equity partners so as to keep creditors at bay.
However, Lloyds filed papers to begin the administrative process on Tuesday and Targetfollow is understood to be preparing to fight the decision.
Targetfollow hasn’t released a statement regarding Tuesday’s activity, but Chairman and Founder Ardeshir Naghshineh did comment on the situation last week, saying: “We have presented a number of viable solutions to Lloyds but they have all been rejected out of hand.
“We have no intention of giving up, particularly as the independent valuations of our properties far exceed those put forward by Lloyds’ valuers. Sales and offers in the past few months show that, if anything, the independent valuations were on the conservative side.”
When approached by the FT, Lloyds declined to comment.
Currently Lloyds has the largest book of real estate debt in the UK, much of which was assumed when it took over HBOS.
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