The liquidators of a housing community interest organisation (CIO) have made donations totalling £250,000 to three charities with similar missions alleviating homelessness and providing social care.
Circle Housing and Support (Circle), an Essex-based social housing charity, held 141 properties across the South East and North East of England.
It provided homes and support to vulnerable adults, former service personnel and asylum seekers.
The charity entered administration in July 2022. Joseph Colley and John Dickinson of CBW Recovery LLP were subsequently appointed as administrators after Circle went into insolvency.
‘Rare to have surplus funds after an insolvency process’
The administrators were subsequently able to successfully assign all property leases to an alternative operator, ensuring that residents of Circle-owned houses had their homes protected.
As part of this deal, the administrators were also able to ringfence funds from reverse premiums to pay all creditors of Circle in full and settle the costs of the liquidation process.
Dickinson additionally insisted that £250,000 be ringfenced for Circle for donation to other charities with similar objectives.
After discussions with the Charity Commission and trustees, it was resolved on 14 February 2025 that donations would be made to London-based Shenehom Housing Association (£50,000), Hopestead, a Norfolk homelessness charity (£100,000) and YMCA Essex (£100,000).
Colley said: “We are delighted to be able to donate £250,000 to three charities that will make a difference to so many individuals experiencing homelessness and hardship.
“It is rare to have surplus funds after an insolvency process, and the case of Circle is a great case study of how the Insolvency Act 1986 can be utilised for effective negotiations to enhance returns to creditors and shareholders/beneficiaries.”
Related articles
