Lancsville gets £10m of extra funds thanks to Cayman Islands investor

Lancsville Construction has received an injection of £10m of cash as a result of a deal struck with Agilo, a venture capital company.

Agilo is based in the Cayman Islands. Its website explains that it invests in distressed companies and special situations.

Jason Granite, a founder of Agilo, because a director of Lancsville in May last year.

Seven months ago Mark Henry, who runs Lancsville, played down fears that it could be in difficulty after reports surfaced that subcontractors were finding no credit insurers would cover the value of their work for Lancsville.

Insurance provider Euler Hermes then told Henry, son of Lancsville's founder Billy Henry, that the company was overtrading.

In the last five years, Lancsville’s annual turnover has rocketed from £20m to £130m.

Agilo’s website explains: “The fund’s main activities include trading distressed debt, investing in general credit opportunities and providing financing solutions for companies in transition.

“In managing the fund we trade globally but have a European focus.

“Our in-depth knowledge of distressed and special situations, gives us a distinctive edge.”

A source said that because the Henry family didn’t want to give up an equity stake in Lancsville at the first time of asking, they entered into the present loan agreement with Agilo.

He added that Agilo is thought to have secured its position through £10m-worth of Lancsville’s assets.

In both 2007 and 2006, Lancsville’s highest-paid director enjoyed a handsome pay packet, taking home a total of £7.6m in the space of just two years. 

Mark Henry has not responded to any requests for information over the past two weeks.

A spokeswoman for Agilo said: “We have a policy of not speaking to the press.”