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Caltongate on the brink of collapse

posted 10 Feb 2009, 04:08 by David Rintoul   [ updated 18 Nov 2009, 15:05 ]

Serious doubts were growing today over the future of the Caltongate development as the company behind the massive project faces a battle for survival.

New accounts posted by the London-based developer Mountgrange showed that it recorded a £24.3 million loss in the year to the end of March 2008.

It is also weighed down by heavy debts and is trying to secure bank support to allow it to survive.

Its auditor has admitted that there is a "material uncertainty that casts doubts about the company's ability to continue as a going concern".

The new figures cast doubt over the £300m Caltongate scheme, which was given planning consent after lengthy delays last summer.

Continued...