According to a document which mysteriously came into my possession, creditors of the financially troubled Margate Dreamland operating company, Sands Heritage Limited (SHL), have voted to agree a Company Voluntary Arrangement (CVA) which will repay their outstanding debts at a rate of 25p in the pound.
Within just a year of Dreamland opening amusement park operator SHL had ran up debts of over £8million and in May 2016 it was forced into administration. Almost 250 unsecured, non-preferential, creditors were owed almost £2.5 million
The documents leaked to me reveal that a
meeting of SHL’s creditors was held in London on 30 August 2017. At that meeting, the administrators proposed to share a sum of £600,000 between the 250 creditors - a repayment rate of 25 pence in every pound owed. The proposal was accepted by a majority of the creditors who voted.
Having secured an agreement to settle its debts it is likely that SHL will shortly be released from administration and allowed to continue to manage Margate’s Dreamland Amusement Park.
SHL was recently purchased by Cayman Islands registered hedge fund Arrowgrass Masterfund who now own 99% of the company shares. The original company directors have now resigned from the SHL board and been replaced. Arrowgrass have also invested a reported £25million in landscaping, extending and further developing the amusement park site and purchasing several properties adjacent to the Dreamland site. Sources close to Dreamland have told me that it is Arrowgrass which is funding the £600,000 offer.
Whilst I welcome Arrowgrass’s investment in Dreamland and the surrounding area I am very disappointed by its 25 pence in the pound offer to its creditors, many of whom are small local businesses. Arrowgrass is an extremely successful hedge fund which generates very high returns for wealthy clients seeking tax-efficient offshore investments. Surely the right thing for Arrowgrass to have done would have been to have offered to pay at least 50p in every pound for those businesses who were shafted by SHL.