Pillings Marina's 3.4m debt

THE Canal &River Trust (CaRT) has renewed its threat to blockade Pillings Lock Marina (CaRT threatens to block marina), writes Allan Richards.

A creditors meeting on 4th February 2014 was told the company that owns the marina, Quorn Marina Properties (now in liquidation), has debts of £3.4m. Subsequently, CaRT's Head of Business Boating, Phil Spencer, has again contacted moorers in the marina to tell them that CaRT intends to sever its connection to the waterway on 14th April 2014.

Phoenix company

A phoenix company, No.750 Leicester Limited (company no.08874871), has written to CaRT saying that it expects to become the new owner of the marina and wishes to enter into a new Network Access Agreement (NAA) which would allow the connection to be maintained.

However the Trust is refusing to enter into negotiations until such time as the new company acquires the land on which the marina stands. At face value, this seems to be a delaying tactic.

Perhaps, CaRT wishes to send a signal to other marina operators who want to renegotiate agreements based on difficult trading conditions.

Debts

Quorn Marina Properties (QMP), hold the freehold of the marina which has a book value of £2.57m. However, it will only realise about £2m upon sale and is subject to a fixed charge of £2.75m. Put simply, there is no money to pay unsecured creditors such as CaRT.

QMP's total debt is some £3.4m, with its debt to CaRT being just £185,303 of that figure.

Not aware

Some moorers at Pillings have expressed concern that they were not made aware of the boaters meeting in Nottingham last Saturday where they could have lobbied CaRT's chief executive, Richard Parry, to remove the threat of blockade.