OM PM about to default ?

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    OM PM about to default ?

    There is a rumour that OM Property Management have been served with a winding up petition by Kingsway Asset Finance - the hearing was scheduled to be in Manchester yesterday 23 Jan 2012.

    This is quite relevant, my lease says something about actions to be taken if the company is ordered to be wound up / liquidated. Quite what happens though ?


    8.l if the Manager goes into liquidation for any reason (whether compulsory or ~ voluntary) or fails to observe and perform its covenants under this Lease then and in any such case the Lessor and the Lessee will join with the transferees and lessees of
    the Properties in arranging for the carrying out of the matters mentioned in the Sixth Schedule the Lessee contributing a reasonable part of the expense of so doing in accordance with the provisions of this Lease



    How can we establish the facts of the hearing which took place and can we confirm whether or not the Winding Up Order gets made ... I guess it is the kind of thing which would appear in the quality papers as an official notice ?

    A clause exists to vote with a simple majority for a Nominee to replace the original manager, but would the Lessor (in this case Proxima, represented by agent Estates & Management) be able to impose their choice ?

    #2
    It is reported that one was served yesterday and that there is hearing underway in Manchester, today.

    Your lease in so far as posted suggests that the lessors and lessees will observe the covenants in the lease. As to a replacement it depends on what rights in the lease the lessor and /or lessees have to nominate, or whehter the votes are allocated solely to lessees. We would need to see more of the lease.
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

    Comment


      #3
      It is reported that the matter was resolved early this afternoon.
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment

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