Virdee owes £52m still, having paid a 25% non-refundable deposit for the purchase of the Oriental City site, also known as 399 Edgware Road. It was due for payment at the end of November, with the deadline having already been extended three times.
Development Securities issued a stock exchange announcement this morning saying: "The £52 million loan notes currently outstanding from the disposal in 2007 of 399 Edgware Road, Colindale, together with interest thereon from 31 July 2008 were not settled by the purchaser on 28 November 2008 in accordance with the previously extended terms."
They added: "these are unprecedentedly difficult market conditions and (we) are now in discussion with the purchaser in order to ensure that the optimum real estate and financial solutions are achieved".
Property Week reports the loan has not been extended again, but Development Securities make no mention of that in their announcement.