Henry Construction’s anticipated voluntary liquidation has left creditors uncertain about their financial recovery.
- Administrators David Hudson and Geoffrey Rowley report a possible exit to creditors’ voluntary liquidation, yet financial outcomes are unclear.
- The company owes £43 million to suppliers but holds only £290,000 in cash, raising concerns.
- Outstanding debts include a secured creditor’s charge and approximately £90,000 owed to preferential creditors.
- HMRC’s potential involvement as a secondary preferential creditor adds another layer of complexity.
In the latest developments, Henry Construction Projects is expected to undergo a voluntary liquidation as administrators from FRP Advisory, David Hudson and Geoffrey Rowley, outlined in the recent progress report. Despite this anticipated transition, the financial recovery for the unsecured creditors remains uncertain, encapsulating the turbulence surrounding the construction firm’s fallout.
The joint administrators have expressed that there may be sufficient funds to cover the claims of over 5,000 unsecured creditors. However, they caution that the liquidation costs are currently indeterminable and the final distribution levels remain speculative. Such ambiguity highlights the precarious position facing creditors who are eager to recoup losses.
Following its collapse, Henry Construction was found to have debts amounting to £43 million owed to suppliers, juxtaposed with a paltry cash reserve of only £290,000. The substantial financial shortfall underscores the magnitude of economic challenges the company faces as it heads towards liquidation.
Efforts to address an outstanding charge by a secured creditor, United Trust Bank Ltd., are ongoing. Administrators are seeking a resolution through mutual agreement, yet this remains a pending task. Additionally, £90,000 is due to preferential creditors, encompassing employees’ pay arrears, unpaid pension contributions, and holiday entitlements. These creditors are anticipated to receive full compensation, although this is potentially delayed by a protective award claim instigated by former employees.
Further complicating the scenario is HMRC’s potential claim as a secondary preferential creditor for approximately £1 million, a situation that remains under scrutiny. The company’s previously robust standing, evidenced by its ranking as the 41st largest UK contractor in the 2022 CN100 list, marks a striking contrast to the current crisis.
The resolution of Henry Construction’s financial turmoil remains speculative, leaving creditors in suspense.
