January 8 2010

Administrators have been called in by Lloyds Banking Group to handle the accounts of Kilmartin after the Edinburgh based property developer in a bid to recoup losses from the developers dwindling portfolio. 

Valued at over a £1bn two years ago its estates are now valued at a mere £300m forcing Lloyds, who are liable for HBOS’s 50% stake in the company and thought to be owed some £250m, to seek an exit strategy. 

The move follows a period of reorganisation instigated by the bank in an attempt to keep the company afloat including reducing overheads and maximising returns but this proved insufficient to cover the scale of losses.

Price Waterhouse Coopers must now decide whether to “hold, sell or test the market” to minimize Lloyds losses.

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