Ashbrookes Loan Notes Update: Security, Default, and Recovery

Investors and loan note holders in the Ashbrookes Group structure have contacted Insolvency & Law, reporting delayed or missed redemption payments. Reports such as these raise questions about:

• What practical protection the security provides to investors and loan note holders
• How the John Street loan note structure operates if payments are delayed or a default occurs

Ashbrookes marketed its John Street product as a 12% fixed rate, secured-loan note. Investors were introduced to a structure built around a Sunderland development.  We reviewed investor documentation, which indicates:

1. A “secured” structure via a Security Trust Deed
2. The property sits in S2 John Street Limited
3. Investors accede to a Security Trust Deed dated 2 October 2023
4. The trustee is Alpha Trustee Services Limited

The structure is set out in the documentation. Nevertheless, one key question remains unanswered: how does the structure operate if payments are delayed or a default occurs? Furthermore, one critical clause in the investor documentation states that the security trustee:

•  “…has no involvement in the day-to-day activities”
• Only starts their work “…at the time of a default.”

This is significant because the presence of a trustee may reassure investors. But here, the paperwork shows that the trustee’s role:

1. Only begins on default
2. Does not include continuing oversight or project monitoring

That distinction may be important where investors report missing redemptions. A review of public planning records identifies further unanswered questions regarding the progress of the John Street development. In July 2025, Sunderland planning officers told councillors:

• There had been no substantive progress on the legal agreement since April 2025
• The applicant had been given a final deadline of 4 September 2025

Planning Refused, Current Status Unclear

When the deadline passed without completion of the legal agreement, Sunderland City Council refused the application. The refusal notice made clear that the necessary planning obligations still weren’t in place.  

According to public reports, although Ashbrookes agreed to resubmit the application, the planning history appears limited since then. Investors awaiting repayment may regard the following as relevant factual matters:

1. A key development remains refused
2. From the public planning history reviewed, we have not identified evidence of substantive progress after the refusal

Land Registry records confirm the property at John Street is:

• Owned by S2 John Street
• Subject to a charge in favour of Alpha Trustee Services (which aligns with the loan note structure)

Financial Records

The financial position of the property-owning vehicle S2 John Street also deserves attention. The latest accounts for the year ended 31 December 2024 show the company had:

1. Net liabilities of £139,667
2. £13,855 in cash in the bank
3. £2,673,910 allocated to “work in progress”
4. Uncollected invoices totalling £1,239,931, including £1,234,909 owed by associates
5. Liabilities of £4,000,289 due after more than one year, including £3,957,343 described as “other loans”

The company appears to be in a balance-sheet deficit position, according to the latest filed accounts. The accounts also state that: “…directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company’s ability to continue as a going concern”.

That statement sits alongside the following reported or publicly available matters:

• Any missed maturities
• The current planning position
• The practical operation of the security structure

As we’ve previously reported, New Capital Link has featured in the wider background to some Ashbrookes-linked investment introductions. This may be relevant background information because New Capital Link has also been reported in connection with other:

1. High-yield loan note promotions
2. Unregulated investment products marketed to retail investors

Read the previous coverage here.

Sonali Craddock

According to the documents reviewed, the Deed of Accession and Loan Note Certificate were witnessed by Sonali Craddock, described as Managing Director. Insolvency & Law has previously reported on Craddock’s involvement in introducer and distribution networks connected to:

1. New Capital Link
2. Intelligent Distribution
3. Alpha Trustee Services
4. The 79th Group
5. The High Street Group ecosystem

The appearance of Craddock’s name on Ashbrookes documentation may be relevant considering the wider distribution and trustee background. View related reports here.

Security trustee and registered charge holder Alpha Trustee Services remains central to the structure. However, as previously noted, its role is reactive rather than supervisory, which may be relevant to investors reviewing the structure.

This raises another question: what steps, if any, has the trustee taken in response to reported missed redemptions? More broadly, readers may also ask whether the John Street project has factual connections with other loan note structures involving some of the same intermediaries and service providers, including:

• New Capital Link
• James Baird
• Sonali Craddock
• Alpha Trustee Services

Conclusion

Let’s be clear, this is not, of itself, evidence of wrongdoing. However, investors may reasonably seek clarity on the respective roles, if any, of recurring introducers, trustees, and intermediaries across unregulated loan note products that later generate investor concerns and complaints.

Are you an Ashbrookes investor whose redemption has been delayed? If so, these five factual questions may be relevant when reviewing your documents or seeking professional advice:

1. Has your redemption date passed?
2. What explanation has been provided for any delay?
3. Has a formal default been declared?
4. What steps, if any, has the trustee taken?
5. What rights are set out in the Security Trust Deed?

This article is based on investor reports, documents, and publicly-available records reviewed by Insolvency & Law. It does not allege fraud, dishonesty, negligence, regulatory breach, or misconduct by any named party.

Where questions are raised, they are presented as matters requiring clarification based on the documents and public records reviewed.

Our investigations team can assist with factual background checks on individuals and companies, and with recovery-related enquiries. Contact us at: investigations@insolvencyandlaw.co.uk

Disclaimer: Insolvency & Law Ltd is not a firm of solicitors or licensed insolvency practitioners. We do not conduct any regulated legal or financial activities as defined under the Legal Services Act 2007 or the Financial Services and Markets Act 2000. We do not offer legal advice, financial advice, debt counselling, or conduct of litigation. All blogs, podcasts, reports, and other published content by I&L are provided solely for general information and educational purposes. They should not be interpreted as a substitute for regulated or professional advice and must not be relied upon as such.  For matters that require regulated legal or financial advice, we recommend seeking guidance from an appropriately authorised and regulated professional.