Firstport have officially been cast adrift and left to sink or swim by their own efforts.
It had been aannounced that Firstport was "up for sale". But there have been no takers.
For Electra the ownership of Firstport was acting as a millstone on their profitability.
Something had to give, and it did.
A new broom at Electra ordered the sale of Firstport's parent company Knight Square.
A major hurdle to any sale was that Firstport's net value was a negative £-39,000,000 and trading losses were continuing.
Much of the trading losses were put down to penal interest rates on their borrowing plus extortinate demands being put on Firstport for fees for "Investor Consultancy" work. Over the years of Electra investment this amounted to several million pounds.
Debt was cleared off the balance sheet by cancelling £10,000,000 worth of shares and by Firstport selling off their leasehold interests in development house manager's flats and then leasing them back.
The leaseholds were sold for £31,000,000 with Firstport receiving £21,000,000 freom the sale. The remaining £10,000,000 was believed to be held back by the purchaser to cover future rental due.
Now news has reached About Firstport that Knight Square has been sold to as yet unnamed offshore investors for the highly suspicious amount of £21,000,000.
Whatever the outcome, there is no need to cry for Electra. Having bled Firstport dry they escape with £21,000,000 having only paid £22,000,000 for their investment in the first place.
As for Firstport, yes their debt mountain has reduced, but they have sold off their assets to keep trading. They no longer have financial backing, so it is sink or swim time for them.
Losing so many development management contracts, having so many residents in open revolt about their charges and poor services and at the same time having to take on new development management contracts at loss leading rates , in order to maintain market share does not bode well for their future.
