A subsidiary of failed firm PC Harrington Contractors has entered administration with its parent company still owing it almost £8m.
Administrators from Mercer & Hole were appointed to take control of Slipform International last month, according to documents filed at Companies House.
Slipform International, which provides equipment and expertise for slipform construction, is wholly owned by PC Harrington Contractors’ holding company.
According to a December update from PC Harrington administrators KPMG, the subsidiary was owed £7.8m by the main contractor when it went under in April last year as a result of “historic inter-company transactions between the various members of the group”.
KPMG said Slipform International had “significant negative net assets… despite being a relatively profitable and well-regarded business”.
In the same update, KPMG warned that creditors of PC Harrington Contractors were likely to miss out on the bulk of money owed to them.
The administrators also asked for an extension of the administration after discovering a complex network of disputes, claims and counter-claims involving the company.
They said resolving these claims could take up to three years and so asked for an extension of their remit to May 2017.
Since the administrators took over PC Harrington Contractors, it has emerged that the concrete specialist had become embroiled in disputed claims involving Mace and Keltbray, worth £28m and £1.5m respectively.
At the time of the administration, the company held just £900 in its two bank accounts, with a further £50,000 held by solicitors on its behalf.
Major creditors include Lafarge Tarmac (which has since been bought by Irish firm CRH), which is owed £2.5m, steel manufacturer BRC ( £2.1m) and insurer Mitssui Sumitomo (£1.3m).