Caltongate development firm plunges into administration

THE company behind the massive Caltongate development has today plunged into administration.

It casts a serious doubt over the development of Caltongate, as well as two other UK sites.

Directors of Mountgrange Capital have appointed Deloitte, which said that the firm is "a victim of the current turbulent property market".

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But the directors of Mountgrange are now also looking at whether they can make an offer to buy the firm's assets out of administration.

In a joint statement, Martin Myers and Manish Chande said: "We believe that these schemes continue to have commercial merit. Despite our best efforts, continued funding from existing banking channels is no longer a feasible option.

"We are, therefore, examining other alternatives including making an offer to buy the assets out of administration and are uniquely placed to do so."

Today's announcement comes a month after the Evening News revealed that Mountgrange recorded a 24.3 million loss in the year to the end of March 2008, with its auditor saying there was a "material uncertainty" about the firm's future.