NMCN collapse left creditors £115m out of pocket

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Unsecured creditors of collapsed utilities contractor NMCN were owed £115.3m successful full erstwhile the institution fell apart.

That is astir treble what its administrators reported backmost successful October, arsenic revealed by Construction News. At the clip Grant Thornton said the £400m-turnover institution owed £60.5m to much than 2,400 unsecured creditors.

The latest study by Grant Thornton reveals NMCN owed monies to much than 3,000 unsecured creditors. They are not expected to beryllium repaid what they are owed, according to the report, arsenic adjacent secondary preferential creditors volition astir apt not beryllium repaid successful full.

The contractor fell into medication successful October, aft it had unveiled a drawstring of nett warnings and a bid to recapitalise the business, backed by turnaround capitalist Svella, collapsed.

Selling disconnected NMCN’s works machinery and vehicles besides enabled Grant Thornton to wage disconnected debts to 2 secured creditors – Svella and Lombard – to the tune of £8.2m, the latest study shows. After its effort to recapitalise NMCN fell through, Svella bought NMCN’s telecoms business and astir of its works machinery.

Meanwhile, Galliford Try bought NMCN's h2o division and Keltbray Highways acquired parts of its infrastructure operations.

Grant Thornton besides confirmed it was looking to widen the medication process by a further 12 months from its existent expiration day astatine the opening of October. The head said determination are inactive assets which request to beryllium identified, amounting to a “substantial” magnitude of enactment which needs to beryllium done.

“The main areas of worth to beryllium realised relates to the merchantability of the freehold properties and continued debtor collections,” the study says. Secured and preferential creditors would person to o.k. this plan.

Last month, 26 erstwhile employees of NMCN took the steadfast to a tribunal implicit the handling of their redundancies. They each belonged to the firm’s gathering business, which Grant Thornton failed to sell. In total, 80 jobs were lost. The erstwhile employees could beryllium entitled to up to £4,352 each via the government's Insolvency Service, if their assertion is successful.