Insolvent contractor Botes Construction will not be rescued as a going concern, administrator Kroll confirmed this week.
Botes Construction and sister company Botes Maintenance, both part of Botes Building, went into administration in June. Social housing specialist Connaught has since bought Botes Maintenance for £3.25m, but Kroll has told a meeting of creditors that no buyer could be found for the construction arm.
The confirmation means that Kroll will now focus on achieving the best result for the company’s creditors. However, many creditors are likely to be left with substantial bad debts. Kroll says that the likely recoveries from the construction division are between £150,000 and £250,000 on current contracts, and £482,000 to £853,000 on completed contracts.
A creditors’ committee has now been established.