Six firms went under in June with subcontractors across the half dozen owed more than £23m

Administrators for the six Ardmore companies which collapsed in June have published details of what each one owes creditors and the taxman.

The London contractor appointed BTG as administrator for its construction group, which includes Ardmore Construction Group (ACG), Ardmore Major Projects, Regeneration, Fit-out, Hotels & Commercial and Landmark Facades.

In all, nearly 300 employees across the six businesses are owed £3m, while subcontractors are owed a total of £23m. Unsecured creditors, which include subcontractors, are owed a cumulative £61m while HMRC, classed as a secondary preferential creditor, is owed £34m.

ardmore

Nearly 300 former Ardmore employees are owed £3m in wages and holiday pay

In filings made at Companies House for each firm, BTG said the administration happened following a ruling in May in which a High Court judge ordered several Ardmore firms to pay Crest Nicholson nearly £15m in a case relating to cladding at 19 residential buildings at Admiralty Quarter in Portsmouth.

Crest, which was claiming more than £18m, said the claim related to alleged fire safety defects at the 569-unit scheme.

In its update, BTG said: “The judgement has not been paid and Crest have sought security for the amount owed. The decision was made to place the Company into administration prior to Crest obtaining a final charging order in order to safeguard the assets of the Company and also as part of a strategy for Group companies subject to the same ruling.”

It said ACG owed subcontractors £5.1m with unsecured creditors owed a total of £10.6m with 119 employees made redundant owed a total of £1.8m.

BTG said ACG is facing 23 potential developer claims linked to work previously carried out by Ardmore Construction Limited.

It added that no judgments had been made so far but the sums involved could range from nil to £300m.

Administrators said ACG had £23.1m of unpaid certificates, unpaid invoices, retentions, applications for payment and work in progress but added a “best case” recovery will be between just £546,500 and £1.6m.

And BTF said ACG had just over £190,000 of cash at the bank when it was appointed. “There may be a further residual balance of cash at bank to be paid but we do not expect this to be material,” it added.

HMRC, which is owed just over £5m, has been told not expect any money back while unsecured creditors have also been warned not to expect any dividend to be paid.

What the Ardmore companies owe

ACG

Administrators say 119 employees are owed £1.8m in wages and holiday pay with subcontractors owed £5.1m. Unsecured creditors are owed a total £10.6m with HMRC owed £5m. Both have been told not to expect any money back. Cash at the bank at the time of administration was £190,000.

Major Projects

Administrators say 73 employees are owed £794,000 in wages and holiday pay with subcontractors owed £2.5m. Unsecured creditors are owed a total £11.3m with HMRC owed £5m. Both have been told not to expect any money back. Cash at the bank at the time of administration was £336,000.

Regeneration

Administrators say 33 employees are owed £118,500 in wages and holiday pay with subcontractors owed £1.6m. Unsecured creditors are owed a total £6.5m with HMRC owed £4.8m. Both have been told not to expect any money back. Cash at the bank at the time of administration was £594,500.

Fit-out

Administrators say no employees have put in claims with subcontractors owed £69.000. Unsecured creditors are owed a total £17m with HMRC owed £4.7m. HMRC has been told to expect a dividend back but unsecured creditors have been warned not to expect any money back. Cash at the bank at the time of administration was £354,000.

Hotels & Commercial

Administrators say 62 employees are owed £266,000 in wages and holiday pay with subcontractors (including retentions) owed £13.9m. Unsecured creditors are owed a total £14.8m with HMRC owed £4.8m. Both have been told not to expect any money back. Cash at the bank at the time of administration was £416,000.

Landmark Facades

Administrators say 11 employees are owed £38,000 in wages and holiday pay with subcontractors owed £464,000. Unsecured creditors are owed a total £871,000 with HMRC owed £4.7m. HMRC has been told to expect a dividend back but unsecured creditors have been warned not to expect any money back. Cash at the bank at the time of administration was £489,000.

TOTALS OWED

298 employees: £3m

Subcontractors: £23.6m

Unsecured creditors: £61m

HMRC: £34m

Source: BTG

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