Probe after 'cold and smelly' home collapsed

HONICKNOWLE CARE HOME LEFT DEBTS OF OVER £3.5M

- By WILLIAM TELFORD

INVESTIGATIONS are continuing after the company running a “cold and smelly” Plymouth care home collapsed into administration leaving debts of more than £3.5m.

Administrators are still probing the affairs of Warwick Park House Ltd, which operated Warwick Park Care Home, in Honicknowle, more than 18 months after the home closed and the firm ceased trading.

A progress report from administrators at Nottingham-based DSW Bridgewood LLP said they have now called in lawyers to assist.

They are looking at transactions through the company’s bank account prior to the firm going into administration and in relation to entries in the accounts, with the hope of clawing back money to help pay off the enormous debts. But it is clear that if they do claim some cash it will go towards paying preferential creditors owed more than £50,000.

Claims from unsecured creditors, thought to total just under £900,000, won't receive anything.

A probe is also underway at Warwick Park House Ltd’s parent company, which has even bigger debts and little likelihood of unsecured creditors receiving the £1.5m they are owed. The bank will also be left short of more than £6m.