Shrewsbury Lion Hotel sale may be postponed

Creditors of the historic hotel are being asked to postpone the building being auctioned off by up to nine months. Owner Howard Astbury had been ordered to secure its sale by this month or an auction would be called.

But creditors could now grant more time at a meeting at the hotel on Wyle Cop next Tuesday. They will decide whether to extend the Individual Voluntary Arrangement until October 8 to allow more time for a buyer to be found.

The hotel was put up for sale to help repay Mr Astbury's debts. He owes more than £280,000 to 90 companies and HM Revenue and Customs.

A letter to creditors from John Whitfield, who is supervising the IVA, recommended they vote for the nine-month extension.

"Though Mr Astbury is presently in discussion with a number of interested parties, no offer has been received; therefore, the hotel will not be sold by January 8, 2013, and the agents have received indications interested parties are waiting to purchase the hotel 'cheaply' at auction," the letter says.

"In my opinion, this is not in the interests of the creditors as a whole and therefore, I believe to enable negotiations to continue and maximise the return, it is being proposed the Voluntary Arrangement be extended for nine months.

"There has been no change in Mr Astbury's circumstances and he still expects to pay his creditors once the sale of the hotel is completed."

The letter also reveals a total of £142,397 is owed to unsecured creditors, with £138,238 due to be paid to HMRC after the sale.

The 234-year-old hotel in Wyle Cop was initially given a price tag of £2.95 million.

But its price was reduced last year to £2.495 million to attract more interest.

The hotel is a Grade I listed building and has a history as a coaching inn dating back to the 16th century.