From the Sunday Times Rich list to £725 million of debt, the courts have ruled Robert Bull bankrupt.
The Owner of Bungalow Giant RoyaleLife declared Bankrupt following £725million Debt
Robert Bull, the majority owner of the troubled British bungalow giant RoyaleLife, was declared bankrupt by an English court in December 2023. This is a stunning change of fortune for Bull who just seven months ago, was rumoured to have a wealth of nearly £2 billion and was the second-highest ranking new entry in the Sunday Times Rich List.
His Lenders Started Insolvency Proceedings
RoyaleLife, which converted static caravan parks into luxury bungalow villages across the UK, is a group of companies owned and controlled by Bull and was professed to have a value of around £4 billion by Bull earlier this year. However, it later transpired that the company was in financial trouble and faced £725 million in debt. Many lenders to parts of the RoyaleLife Group, including Intermediate Capital Group Plc, Avenue Capital Group Llc and Sun Communities Inc, put the group’s entities into insolvency proceedings. Some also had personal guarantees from Bull.
Asset Advantage Ltd, a lender based in Basingstoke, also brought a bankruptcy petition against Bull as part of a class action. According to a document submitted to the court, the £725 million in debt is made up of 22 loan agreements with various lenders, where Bull made personal guarantees in support of the debt.
Bull Declared Bankrupt by Courts
Judge Michael Giddins granted the bankruptcy order against Bull on 1 December 2023 in a hearing at Southampton County Court.
The lawyer representing Bull told the court that his client was hoping to enter into an individual voluntary arrangement (IVA), a form of personal insolvency that hopes to establish an agreement with creditors to reduce debts. Accordingly, Bull had asked the judge to stay the bankruptcy order to allow for a meeting of creditors to be held on 20 December 2023 to consider the IVA. Under that agreement, Bull would drastically reduce the size of his debt, asking creditors to agree to receive 0.25% of what they are owed. The proposal would have also resulted in the £725 million debt being reduced to about £2 million. His lawyer admitted that it was not a great return to the creditors but pointed out that at least it was a return.
However, this was rejected as more than three-quarters of creditors by value would have to agree to the proposal and already over a quarter of creditors had indicated that they would vote against the IVA.
This is not the first time that Bull has been declared bankrupt; he was previously made bankrupt in 2016 when he owed £3.5 million but managed to bounce back and turn his fortunes around.
If you are facing corporate or individual insolvency, please get in touch with our insolvency solicitors at info@witansolicitors.co.uk.
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