High Court shuts down two landbanking firms
The High Court has placed two landbanking businesses into provisional liquidation on the grounds of public interest, following an investigation by the Insolvency Service.
CLS & Partners Limited and Sterling Mortimar Limited had been selling small plots of land located in Ossett, Wakefield, to investors, claiming large returns would be received when planning permission is granted.
Petitions to wind up both companies were presented by The Secretary of State for Business, Innovation and Skills on 21 March and the court appointed the Official Receiver to act as provisional liquidator of the companies a week later.
Its role will be to protect the assets and financial records of the companies pending determination of the petitions.
The provisional liquidator also has the power to investigate the affairs of the companies in order to protect their assets, including any third party or trust monies or assets in the possession of or under the control of the companies.
The case is now subject to High Court action and no further information will be made available until the petitions are heard in the High Court on 9 May 2012.
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