Action gives troubled modular housebuilder two week breathing space from creditors in which to sell company

Modular housebuilder Ilke Homes has confirmed it has filed a notice to appoint an administrator in a bid to protect itself from creditors during last ditch attempts to secure a sale or new investment.

Housing Today understands the filing of the notice is intended to provide Ilke with 10 working days protection from creditors who might otherwise seek to take action against the firm to recover loans.

ilke Homes factory worker on scissor lift

A source close to the firm said the aim was to provide stability to enable a deal to happen, and that conversations with investors were still ongoing.

Ilke, which builds light gauge steel frame modular homes from its 250,000 sq ft factory in Knaresborough, Yorkshire, announced it was being put up for sale just over a week ago after its investors indicated to the firm they were unhappy with the rate of cash burn at the organisation.

A spokesperson for the firm said: “On Tuesday 20th June ilke Homes filed a Notice of Intention to appoint administrators.

“This is a protective measure in the best interests of all parties based on the financial position of the company. Ilke Homes continues to progress conversations with investors regarding securing the company’s future and further updates will follow as we have them.”

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Housing Today understands the notice of intention to appoint administrators gives Ilke a two-week grace period to seal a deal.

The problems, which first emerged after the company was late to file accounts this spring, come despite the firm having secured £100m of funding as recently as December last year.

In Ilke’s most recent published accounts to March 31 2021, it reported a loss of £41.3m of turnover of just £27.5m.

Last month the registrar of UK businesses, Companies House began action to strike the firm off the register of companies, given its late filing of accounts, before then saying on Friday that this action had been “discontinued” as an extension had been pre-agreed.

Ilke initially said that the delay to its accounts was due to the need to avoid adding a minor cautionary note to the accounts statements, however, the subsequent intervention of the firm’s investors saw the business stop production and commence a full sale process.

Last week the business said it was in talks with up to 15 investors regarding the sale, but to date no deal has been concluded.