Dreamland's lease, properties and rides have charges on them

The Save Dreamland Campaign was launched by Joyland Books in January 2003 and is now supported by several thousand people. This is the place to discuss all aspects of saving Margate's famous amusement park and its iconic , Grade II listed Scenic Railway, Britain's oldest roller coaster.

Moderators: dave771, porf, Sarah

Dreamland's lease, properties and rides have charges on them

Postby kevin » 11 Nov 2016, 22:45

Loans totalling just over £2million made to former Dreamland operator Sands Heritage Ltd and company Southeast Retail Ltd mean the leasehold for the amusement park, 49-51 Marine Terrace - the former Punch and Judy pub and Escape club - and 13 rides all have charges on them.

The charges are security against failure to repay the loans. A 'negative pledge' in all three cases means the lender must be compensated ahead of any other creditors in regards to the charged property or items.

In May joint administrators Duff and Phelps were brought in to the troubled attraction.

Sands Heritage, which had operated the park for less than one year by that point, owed an estimated £8.34 million to scores of creditors, including many small local businesses, and had a total deficit of some £14 million.

Duff & Phelps role is to market and sell the business and assets although this may take until March 2017.

The list of creditors revealed that a cash injection of £600,000 came from offshore company Arrowgrass in May. The amount owed by August for the Arrowgrass loan was £2.3 million due to interest, charges and costs.

The terms of that loan meant a charge was placed on the leasehold for Dreamland.

A second loan made by Arrowgrass last month for £1million has a charge placed on 49-51 Marine Terrace.

Part of the property is currently occupied by Phases dance and fitness studio. The pub is occupied by Ale Caeser but an announcement on the venture's facebook page says they will be closing on November 19 and are now seeking a new location with the aim of opening in the new year.

A third loan, for £500,000, was made to Southeast Retail Ltd, whose director Nick Conington is also a director for Sands Heritage Ltd, in return for a charge on 13 fairground rides.

The loan was made in March, before Sands Heritage Ltd went into administration, by Charles Whitbread, of the Whitbread family and company. He is also the High Sheriff of Bedfordshire.

The rides documented by Companies House as being under the charge, and with 'Margate ride valuations January 2015,' are:

Cyclone Twist valued £45,000

Apple Coaster valued £75,000

Giant Wave Swinger valued £180,000

Giant Wheel valued £325,000

Log Flume valued £140,000 (All of the steel parts, lifts, pumps, overflow griddle and 10 logs.) Not constructed

Mono Cycle valued £55,000

Music Express (updated Caterpillar ride) valued £190,000

Jumping Boats valued £180,000

Astroglide valued £110,000

Shoot tower valued £80,000

Teacups valued £70,000

Swing Boats valued £10,000

Helter Skelter valued £130,000


Read more at http://www.kentlive.news/dreamland-s-le ... OBoiw2q.99
kevin
 
Posts: 130
Joined: 16 Mar 2006, 17:55
Location: essex

Re: Dreamland's lease, properties and rides have charges on

Postby Bob » 12 Nov 2016, 07:39

The cost of all these loans means Dreamland cannot survive. It puts Arrowgrass though in a very good position to buy out the assets as the charges on Dreamland will make Dreamland of no interest to anyone else
Bob
 
Posts: 507
Joined: 30 Nov 2003, 21:21

Re: Dreamland's lease, properties and rides have charges on

Postby Vince, Charlie and Sam » 13 Nov 2016, 19:50

After so many decent and honest people worked so hard for so long to save Dreamland, it is an absolute tragedy that Sands Heritage ever got involved with it. I do agree with Bob, Dreamland is finished, there is no way it could ever trade successfully with Sands in control.
User avatar
Vince, Charlie and Sam
 
Posts: 922
Joined: 25 Aug 2003, 12:56
Location: Ramsgate.

Re: Dreamland's lease, properties and rides have charges on

Postby Bob » 15 Nov 2016, 09:19

Vince, Charlie and Sam wrote:After so many decent and honest people worked so hard for so long to save Dreamland, it is an absolute tragedy that Sands Heritage ever got involved with it. I do agree with Bob, Dreamland is finished, there is no way it could ever trade successfully with Sands in control.



It is the Administrators that are in control now. There legal remit is to try to recover as much of the debt as possible. I would estimate that Dreamlands debt has now gone from £14M to over £20M. It is not clear what Dreamlands turnover is as a full years trading figures appear to have never been given but it will not be that high. I cannot see anyway that Dreamland can continue for long.

The administrators do not put money into the business so it has to wok with whatever funds the business has and that only really come from the Arrowgrass loans the first being for £600,000 which has already and the second for £1M which will likely quickly turned into £2.4M so the £1M will quickly become about £3M . The fact a second loan has been taken out tends to indicate Dreamland has already spent most of the £600 ,00o. That loan was taken out shortly after it went into administration so it tends to indicate that even during the summer Dreamland was loosing about a £100,000 to a £150,000 a month. It now has another £1M but we are into the winter months. I suspect it will bun through that at about £200,000 a month so it gives Dreamland about 5 months. I can really see no way it can be turned around and remember at present Dreamland pretty much pays no rent for the site

This all started going wrong from day one. There was no real plan or strategy and rides were being bought without any thought most of which have been lying around in protected so are in such poor condition are of no real use. Others were incomplete so again of no real use. The plans what they had were far to ambitious and where not even delivered. The site opened incomplete and adopting an Alton Towers type charging approach which of course failed

A major reason Sands gave for the failure was failing to have the Scenic operation yet this ride has been left out of use for several months including the peak season with no real reason for why they have not got it operational
Bob
 
Posts: 507
Joined: 30 Nov 2003, 21:21

Re: Dreamland's lease, properties and rides have charges on

Postby smilerbaker » 15 Nov 2016, 12:45

can anyone explain how loans can be given and charges can be put on assets while a company is already in administration??? as it stands all the other creditors are totally screwed
smilerbaker
 
Posts: 98
Joined: 08 Apr 2008, 08:21

Re: Dreamland's lease, properties and rides have charges on

Postby Bob » 23 Nov 2016, 21:56

The Dreamland saga takes another twist. The charge on the rides is now with a company called South East Retail. This company has not filled its accounts. If South East Retail does fail this charge would be called in. It is doubtful that Sands could buy out the charge which would mean the bailiffs would go in to seize the rides. So at present it is wait and see.
Bob
 
Posts: 507
Joined: 30 Nov 2003, 21:21

Re: Dreamland's lease, properties and rides have charges on

Postby Vince, Charlie and Sam » 27 Nov 2016, 19:45

Bob wrote:

It is the Administrators that are in control now. There legal remit is to try to recover as much of the debt as possible. I would estimate that Dreamlands debt has now gone from £14M to over £20M.


So the debt has increased by £6 million in just a few months? Not on operating costs I would imagine, perhaps somebody has their sticky fingers in the till?
User avatar
Vince, Charlie and Sam
 
Posts: 922
Joined: 25 Aug 2003, 12:56
Location: Ramsgate.

Re: Dreamland's lease, properties and rides have charges on

Postby Bob » 28 Nov 2016, 08:39

Vince, Charlie and Sam wrote:
Bob wrote:

It is the Administrators that are in control now. There legal remit is to try to recover as much of the debt as possible. I would estimate that Dreamlands debt has now gone from £14M to over £20M.


So the debt has increased by £6 million in just a few months? Not on operating costs I would imagine, perhaps somebody has their sticky fingers in the till?



Most of it is estimate. We know that recently anther charge of £1M was taken out. Given the £600M loan turned into £2.4M in a matter of months it is not unreasonable to assume the £1M will turn into £4M of debt. WE can be pretty certain as well that Dreamland is still trading at a loss as it did not turn in a profit during the summer months it is not going to do that in the winter months. There is also the Scenic out of action so if we assume that what they said was true that in the opening months of Dreamland the failure to have the Scenic running then contributed in a big way to the loss that must be equally true now
Bob
 
Posts: 507
Joined: 30 Nov 2003, 21:21

Re: Dreamland's lease, properties and rides have charges on

Postby Bob » 16 Dec 2016, 21:55

kevin wrote:Loans totalling just over £2million made to former Dreamland operator Sands Heritage Ltd and company Southeast Retail Ltd mean the leasehold for the amusement park, 49-51 Marine Terrace - the former Punch and Judy pub and Escape club - and 13 rides all have charges on them.

The charges are security against failure to repay the loans. A 'negative pledge' in all three cases means the lender must be compensated ahead of any other creditors in regards to the charged property or items.

In May joint administrators Duff and Phelps were brought in to the troubled attraction.

Sands Heritage, which had operated the park for less than one year by that point, owed an estimated £8.34 million to scores of creditors, including many small local businesses, and had a total deficit of some £14 million.

Duff & Phelps role is to market and sell the business and assets although this may take until March 2017.

The list of creditors revealed that a cash injection of £600,000 came from offshore company Arrowgrass in May. The amount owed by August for the Arrowgrass loan was £2.3 million due to interest, charges and costs.

The terms of that loan meant a charge was placed on the leasehold for Dreamland.

A second loan made by Arrowgrass last month for £1million has a charge placed on 49-51 Marine Terrace.

Part of the property is currently occupied by Phases dance and fitness studio. The pub is occupied by Ale Caeser but an announcement on the venture's facebook page says they will be closing on November 19 and are now seeking a new location with the aim of opening in the new year.

A third loan, for £500,000, was made to Southeast Retail Ltd, whose director Nick Conington is also a director for Sands Heritage Ltd, in return for a charge on 13 fairground rides.

The loan was made in March, before Sands Heritage Ltd went into administration, by Charles Whitbread, of the Whitbread family and company. He is also the High Sheriff of Bedfordshire.

The rides documented by Companies House as being under the charge, and with 'Margate ride valuations January 2015,' are:

Cyclone Twist valued £45,000

Apple Coaster valued £75,000

Giant Wave Swinger valued £180,000

Giant Wheel valued £325,000

Log Flume valued £140,000 (All of the steel parts, lifts, pumps, overflow griddle and 10 logs.) Not constructed

Mono Cycle valued £55,000

Music Express (updated Caterpillar ride) valued £190,000

Jumping Boats valued £180,000

Astroglide valued £110,000

Shoot tower valued £80,000

Teacups valued £70,000

Swing Boats valued £10,000

Helter Skelter valued £130,000



Read more at http://www.kentlive.news/dreamland-s-le ... OBoiw2q.99





In another turn South East Retail Ltd has failed to file it's accounts. This may not mean anything as companies can be late with filing their accounts but equally it can be a sign of trouble.

Whilst not directly related the Sands hotel which had been late with its accounts has now filed to be delisted. What is happing with the hotel is unclear

If SouthEast retail does fail one of the first thing the administrators would do is call in the loan. Sands Heritage would probably not be able to stumpup£1M so the balliffs would go in
Bob
 
Posts: 507
Joined: 30 Nov 2003, 21:21

Re: Dreamland's lease, properties and rides have charges on

Postby porf » 06 Jan 2017, 07:36

Paul Freeman
User avatar
porf
Site Admin
 
Posts: 503
Joined: 04 Jun 2003, 20:35
Location: London

Re: Dreamland's lease, properties and rides have charges on

Postby Peet » 07 Jan 2017, 19:39

That sounds like good news, I hope it will enable them to bring in a major new ride like the (ex Dreamland) Loudon Castle looping coaster. There must be some confidence in turning Dreamland into a profitable business or Arrowglass wouldn't be willing to invest
Peet
 
Posts: 91
Joined: 16 Nov 2009, 13:48
Location: London


Return to Save Dreamland Campaign Forum

Who is online

Users browsing this forum: No registered users and 1 guest

cron