Dylan Harvey investors may get some cash back

Investors who paid deposits to collapsed property broker Dylan Harvey Residential Ltd may get some money back, according to the firm’s administrators.

A new report by the Manchester office of CLB Coopers said it planned to put DHR into liquidation, which would give extra powers to chase down almost £3m of “potentially reversible” claims, which include intercompany loans, the sale of three properties and a £1.6m dividend paid to the directors shortly before its failure.

A payment for £253,000 made between another two companies owned by DHR director Toby Whittaker may also be open to a charge of misfeasance, it said.

The report said that the opportunities offered to investors by the company, which acted as a broker on a number of residential schemes in Manchester, several of which were never built, were still under consideration of The Financial Services Authority to see if they were “proper”.

The firm went into administration owing around £100m, including £6.5m in deposits from investors. Claims from 390 creditors will now be passed over to liquidators.

“Liquidators will have greater powers of investigation and will not suffer the time constraints imposed by an administration,” said the report.

“Subject to realisations obtained by the outlined actions, the subsequently appointed liquidators will be in a position to make a distribution to unsecured creditors.”