Lloyds left 1.3bn out of pocket from Kenmore demise and Admiral swap

Kenmore Property Group, which collapsed into administration last week, owes more than &pound;700m to Lloyds Banking Group. <br /><br />Kenmore, which controlled &pound;1.8bn&nbsp; of assets, was put into administration last Thursday by Grant Thornton, after becoming incapable of meeting any of its existing business obligations as a result of falling home sales.<br /><br />Owned by one of Scotland&rsquo;s wealthiest men, John Kennedy,&nbsp; Kenmore made a loss of &pound;85.7m in the year to June 2008. But HBOS&rsquo;s Peter Cummings &ndash; known for splashing cash at property secured ventures &ndash; agreed &pound;875m of refinancing a month before&nbsp; he left his post as commercial property director, allowing the firm to trundle on. <br /><br />Lloyds has now agreed to extend emergency funding so that the firm can continue to trade as a going concern, but 21 of the Kenmore Group&rsquo;s companies have been placed into administration and a further two into receivership. It is believed managing director Rob Brook is in talks about leading a management buyout for certain parts of the business.<br /><br />Lloyds was also facing this weekend a further &pound;600m hit from collapsed pub chain Admiral Taverns, as a result of its merger with collapsed HBOS last year.&nbsp; <br /><br />The proposed debt-for-equity swap will come this week in the form of a pre-pack administration &ndash; with Lloyds taking control of the pub chain.