Midas collapse leaves workers £4.5m out of pocket

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Midas Construction collapsed owing implicit £60m successful debt, including £4.5m to erstwhile employees, administrators' documents person revealed.

The Devon-based contractor, which had operated for 45 years, collapsed successful February. Teneo Financial Advisory Ltd was appointed arsenic the head for some Midas Group and Midas Construction Ltd.

The connection of affairs shows that 61 employees of Midas Group were owed much than £1.4m successful unpaid wages, with Midas Construction besides owing 239 employees £3.17m. 

Suppliers to Midas Construction claimed £51,274,938 successful debts, with Midas Group assessed to beryllium suppliers £7,245,949.

Pension deficits for the 2 firms stood astatine a combined £9m.

The 2 main Midas firms were assessed by administrators to person much than £8.3m successful realisable assets, with creditors claiming a full adjacent to £70m, leaving a £60m shortfall. 

The full disposable for preferential creditors from Midas Construction stood astatine £7.3m, with a further £1m assessed to beryllium made up from Midas Group assets.

The connection of affairs besides laid bare the insolvency's interaction connected the operation proviso chain.

A fig of subcontractors were besides owed debts moving into hundreds of thousands of pounds. Midas Construction's connection of affairs showed that it owed £241,000 to MKR Construction and a further £239,000 to D Wall Construction Services Ltd. Facade Concepts Ltd was owed £136,000, portion M&E steadfast FP Hurley & Sons is listed arsenic being owed £103,420.

More than 1,500 firms crossed the proviso concatenation were owed hundreds of smaller debts, including Contour Civil Engineering Ltd (£31,000), Certus Construction (£49,475), Bristol-based Churngold Construction (£75,704) and Balgores Roofing (£32,207).

In March, it was announced that Morgan Sindall had taken implicit the operation of a edifice successful Devon from Midas.

In the erstwhile month, administrators from Teneo managed to merchantability portion of Midas’s Mi-space property services to Bell Group, an interiors and attraction specialist. The merchantability resulted successful 46 jobs being saved.

The remainder of the radical has gone into medication with 303 radical made redundant.