Boss of failed North Quay development in Hayle with £135m debts declared bankrupt

The man behind the spectacular collapse of the North Quay project in Hayle has been declared bankrupt. Simon Wright has been forced to hand over control of all his personal assets to his biggest creditor, BCM Global, an independent provider of mortgage, property and commercial loans based in Ipswich, to whom he owes more than £100m for money borrowed for North Quay. development in the coastal city.

At the end of January, work on the controversial regeneration housing scheme ground to a halt after all the companies involved went bankrupt, leaving debts of more than £135m. The 100-acre site has been locked down and London-based administrators Moorfields Advisory have been appointed to sort out the mess.

Moorfields Advisory has since appointed DCS Universal Carpentry and Joinery Ltd, to complete Block Y1 of the current phase of the residential scheme.

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The specialist recovery firm has been appointed administrators of Sennybridge (Hayle) Limited; Corinthian Plant Limited; Corinthian Pencoed Limited; Corinthian Land Limited and Corinthian Access Limited. Other companies involved in the scheme, including Hayle Harbor Authority Operations Limited, are being administered by other administrators as a total of eight firms have gone bankrupt.

Administrators said they plan to see the entire project completed over time, but that will require appointing another contractor for the next stages. The original plan was for a residential quarter of 60 houses built around a series of sheltered gardens and courtyards; The Stable Block, a refurbishment of a Grade II listed building; Riviere Fields, a new neighborhood with 254 homes; Chieftains Yard, a cluster of 32 apartments located in a lush former quarry; and Western Gateway, a beachfront condo hotel, community hall and water sports center. If built, it would add to the 131 apartments, 20 houses, shops, business premises and fishermen’s warehouses in the first phase.

While Moorfields tried to save the project, its biggest creditor BCM Global applied for the main man behind the failed scheme, Simon Wright, and his wife Rebecca, to be declared bankrupt. Mr Wright, 56, is or was a director of all eight firms that collapsed while his wife is or was a director of half of them.

The mortgage specialist filed for bankruptcy against Mr and Mrs Wright on 28 March. This was granted on 10 July and published in The Gazette on 16 July (bankruptcy notices for Simon Wright can be viewed here and those for his wife Rebecca are here).

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The legal decision means Mr and Mrs Wright, of Croesyceiliog, Gwent in Wales, will be officially bankrupt for 12 months, but the decision will remain a public matter for 15 months. The consequences of bankruptcy can last for several years.

Bankruptcy means the Wright family’s assets, including their home, other property, cars and bank accounts, could be sold to recoup some of the cash they are owed. It also means that they will be banned from running any business, it may be difficult for them to borrow money or even freely access bank accounts, as they will first have to seek permission from lenders.

According to the Government’s insolvency experts, bankruptcy is a very serious matter. On their website, they say, “Bankruptcy is not a magic solution. Bankruptcy is a major decision, as its consequences can affect you for years afterward.

Bankruptcy is not the fastest way to get out of debt. Although bankruptcy normally lasts for one year, you may be required to make payments from your income for three years. It may also take longer to deal with some assets. But bankruptcy is not the end of the financial road. If you don’t have an alternative way out of insolvency, bankruptcy can reset your finances and free you from debts you can’t pay.”