Homes England is set to get only \u00a3126,423 from the \u00a369m it loaned to Ilke Homes \u2013 even though liquidations and administration processes have generated \u00a35.1m earmarked for it.<\/p>\n
Insolvency specialists overseeing processes for three Ilke Homes companies have managed to recoup the sum but a legal agreement means almost none of it is being returned to taxpayer-funded Homes England.<\/p>\n
Offsite specialist Ilke Homes went under in June 2023 owing \u00a368.8m to the government housing accelerator.<\/p>\n
A new and final report from liquidator Alix Partners on Ilke Homes Ltd noted that while Homes England was the only secured creditor of the Ilke Homes companies, it will not receive any money from Ilke Homes Ltd .<\/p>\n
It will instead go to three other companies \u2013 KM Modular Housing, CF ILK Investments LP and Luxembourg-registered Whitehorse Holdings \u2013 which loaned \u00a35m to Ilke as it struggled for finance in May 2023, just weeks before its collapse.<\/p>\n
The deal, called a subordination deed, means that the companies take rank ahead of Homes England for the first \u00a35m recovered, despite not being named as creditors and Homes England appearing as though it was first in line for payments.<\/p>\n
Some \u00a3128,423 has been recouped through Ilke Homes Ltd.<\/p>\n
Two other Ilke companies \u2013 Ilke Homes Land Ltd and Ilke Homes Holdings \u2013 are still in administration.<\/p>\n
The administration of Ilke Homes Land Ltd has raised \u00a34.9m earmarked for Homes England and \u00a398,000 has become available via Ilke Homes Land Ltd.<\/p>\n
It had previously been thought that Homes England might be in line to recover \u00a34.3m from the companies<\/a>.<\/p>\n But while the figure has been revised upwards, it will mostly not be recouped by the taxpayer.<\/p>\n Cash available through the administration and liquidation processes was thought to have dropped due to the theft of plant and equipment from one of Ilke\u2019s factories<\/a>\u00a0and problems selling completed modules.<\/p>\n Administrators subsequently sold land in Milton Keynes and Birmingham for \u00a311m and \u00a31m respectively.<\/p>\n In August 2024, the liquidators negotiated an insurance settlement of \u00a3161,603 over the equipment lost in the factory break-in.<\/p>\n The total amounts from the companies in administration could change, but currently total \u00a35.1m across the three entities with Homes England due to be paid approximately \u00a3126,423 after the other companies are repaid.<\/p>\n Ilke companies owed \u00a3308.5m to unsecured creditors, with just \u00a3827,270 expected to be returned.<\/p>\n