Dreamland creditors could get their money back [owned now by Cayman Islands company]
By Paul Francis From KM Kentonline
A multi-million pound investment in Dreamland is expected to improve the prospects of some creditors being paid money they are owed, according to a report by administrators.
But the investment has not improved the prospects of so-called non-preferential creditors that together are owed about £5.9 million.
These include a number of small businesses.
The total owed to preferential claims is a much smaller £148,652 – covering mainly staff wages.
A progress report on Dreamland – which covers the period from January to May – by administrators Duff and Phelps re-iterates concerns that unsecured creditors are still at risk losing out, saying that it is “uncertain” they will get all their money back.
“This will be dependent on the outcome of a sale of the business or alternative exit strategy,” the report states.
While the report sets out that the attraction has a trading deficit of £17.7m, that figure reflects the fact the operator has made significant improvements to the park – including new rides and equipment totalling £8.3m.
It has also spent £5.53m on acquiring various properties around the site.
The attraction has had a successful relaunch opening in May that saw 9,000 visitors.
The revamp also saw the creation of an entertainment space for 15,000 people – used for the sell-out Gorillaz Demon Dayz festival in June.
The business, which went into administration in 2015, is now effectively owned by Arrowgrass Capital Partners, based in the Cayman Islands, who announced in February that it was to make a £15m cash injection in the park.
The report says Arrowgrass has now ploughed £27.4 m into the attraction in Margate.
IMAGE: Administrators have given new hope for Dreamland creditors
For more on this story go to: http://www.kentonline.co.uk/thanet/news/new-hope-for-dreamland-creditors-128301/
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