Modular housebuilder Ilke Homes has confirmed it has filed a notice to appoint a bankruptcy administrator in a bid to protect itself from creditors during last-ditch attempts to secure a sale or new investment.
Building understands the filing of the notice is intended to provide Ilke with 10 working days of protection from creditors who might otherwise seek to take action against the firm to recover loans.
A source close to the firm said the aim was to provide stability to enable a deal to happen, adding 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, North 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 organization.
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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Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder magazine. Email at [email protected]
Gary Fleisher, the Modcoach
