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Future of £3.5bn ‘British Disneyland’ ripped to shreds as furious row erupts over a DECADE after it was unveiled
LRCH has been hauled into a High Court legal dispute with an American streaming giant
THE future of the £3.5bn "British Disneyland" could be ripped to shreds as a furious row erupts over a decade after it was unveiled.
First announced in 2012, the London Resort is set to be built on Swanscombe Peninsula in Kent.
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But since then the build has been plagued with disastrous setbacks.
Now, the company behind the theme park dubbed the "Dartford Disneyland" is being taken to court by Hollywood studio, Paramount.
London Resort Company Holdings (LRCH) has been hauled into a High Court legal dispute with the American streaming giants due to breaches of agreement of pay.
Paramount, also a former collaborator, was one of the creditors that originally lent its name to the park's attractions.
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However, an insolvency judge has found at least three "serious and irremediable" breaches of LRCH's agreement to pay creditors such as Paramount.
Paramount is known for producing iconic films such as Titanic, the Indiana Jones films and The Godfather.
The Hollywood producers had also lent its name and intellectual property (IP) rights to the proposed park.
This would have allowed LRCH to name its attractions after movies such as Star Trek and the Mission: Impossible films.
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LRCH proposed a Company Voluntary Arrangement (CVA) involving a debt-equity swap to cancel unsecured creditors' debts in exchange for company shares.
Despite opposition from Paramount and other creditors, it was approved in April 2023.
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However, Paramount told the High Court in October 2024 that LRCH had not adhered to their CVA obligations.
Paramount argued LRCH had stopped trading and sold land without informing creditors.
The promised £607m funding had not materialised, and all LRCH websites were shut down.
Paramount then called for the CVA's termination to halt further asset disposals.
The High Court then revealed the project was mainly funded by Dr Abdulla Al-Humaidi, who faced financial issues and fraud allegations, and had recently declared bankruptcy.
Judge Sally Barber criticised the CVA supervisor for not terminating the CVA despite breaches, and ordered its termination.
The judgment notes: “The freehold land, being an integral part of the site on which the theme park is to be built, was not only presented in the proposal as the company’s only asset but was obviously central to its business and therefore to the CVA.
“Without the site, there was no land on which the theme park could be built.”
The court ruled there had been an "irremediable breach" of the terms of the CVA and directed Mr Batty to issue a certificate of termination.
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Further High Court hearings in the New Year will decide London Resort's fate, with the company aiming to enter administration to salvage the project.
LRCH and Paramount have been approached for comment.
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The London Resort timeline
October 2012 - The London Resort is announced as London Paramount Entertainment Resort, to open in 2019
April 2013 - Discussion over development after discovery of a rare species of spider
May 2014 - London Paramount Entertainment Resort granted Nationally Significant Infrastructure Project status
December 2014 - Partnership with BBC Worldwide announced
March 2015 - Partnership with Aardman Animation and BFI announced
September 2015 - Opening date pushed back to 2021
November 2016 - Waterpark plans scrapped, opening date pushed to 2022
June 2017 - Paramount pulls out, with park renamed as The London Resort
September 2017 - Opening date pushed back to 2023, with estimated costs rising to £3.5billion
November 2018 - Opening date pushed back to 2024
April 2019 - Partnership with ITV Studios announced.
November 2021 - Natural England designates the area as a SSSI for nationally important invertebrates, breeding birds, plants and geology
March 2022 - Resort application is withdrawn
March 2023 - London Resort Company Holdings goes into administration
April 2023 - A Company Voluntary Arrangement (CVA) is agreed on
May 2023 - The transfer of a plot of land, considered a material change, occurred without prior notice to the CVA supervisor
June 2024 - Swanscombe Development LLP, the land for The London Resort, is listed for sale
October 2024 - Paramount tells the High Court that LRCH had not adhered to their obligations under the CVA
December 2024 - The judgement is published
New Year 2025: Further High Court hearings are scheduled to decide the fate of London Resort
January 2025: A court hearing will determine whether LRCH can enter administration
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