Creditors of ISG subsidiaries face financial disappointment as administrators signal unlikely payouts.
- Administrators of ISG subsidiaries alert creditors of the unlikely prospect of financial recovery.
- No funds are anticipated for distribution to creditors, though future investigations may alter this outlook.
- Subcontractors advised against accessing former ISG sites or fulfilling pre-collapse ISG orders.
- Build UK intervenes to assist ISG apprentices with finding new positions in the industry.
Creditors of five ISG subsidiaries have been forewarned by administrators that they are unlikely to recover any outstanding debts owed by the now-defunct firm. This stark warning was communicated through a letter dated 30 September from administrators Timothy Vance and Alan Michael Hudson of EY-Parthenon. According to their assessment, no funds are expected to be available for distribution to the creditors in question. However, the administrators intimated that further investigation into ISG’s financial affairs might yield different outcomes in the future, with a more detailed proposal expected by mid-November.
Potential creditors should note that EY-Parthenon has specifically identified certain ISG entities as being unlikely to pay out any owed sums. These subsidiaries are ISG Central Services Ltd, ISG Construction Ltd, ISG Engineering Ltd, ISG Fit Out Ltd, and ISG Retail Ltd. This cautious approach is encapsulated in their communication, reflecting the complex and precarious nature of financial recoveries in such situations.
Furthermore, subcontractors have been instructed not to attempt entry into former ISG sites, which remain closed. The administrators have advised these parties to engage directly with the site owners to retrieve any tools or materials left behind. This directive aligns with a prior email from ISG’s chief executive, Zoe Price, which also detailed the closure of ISG sites and outlined the process for arranging a systematic retrieval of company assets.
In another significant advisory, the administrators have clarified that any debts incurred by ISG following its administration must be satisfied entirely. This directive is particularly pertinent for companies who might otherwise expect reciprocal payments from ISG for obligations predating its collapse. Additionally, EY-Parthenon advises against fulfilling orders made by ISG prior to the administration unless expressly authorised.
Amidst this financial turmoil, attention is also directed towards ISG apprentices, whose training has faced disruption. Build UK reports that through concerted industry efforts, 36 out of the affected 140 apprentices have successfully transitioned into new roles, with expectations set for even more placements. This initiative underscores an industry-wide responsibility to ensure the continued professional growth of the next generation.
The financial future for ISG’s creditors remains bleak, though industry support mitigates the impact on its apprentices.
