Creditors of PC Harrington Contractors will meet today to examine administrators’ proposals to recover around £28.4m owed by the failed concrete firm to suppliers.
Administrators from KPMG have estimated that PC Harrington Contractors, the firm that worked on London’s Walkie Talkie, can recoup a little over £3m from the sale of property, including £1.9m from its fleet of cranes.
However, this will leave suppliers and subcontractors potentially up to £25.3m out of pocket.
A large chunk of money owed is to other parts of parent company the Harrington Group, including £7.8m to Slipform International and £6.3m to P&E Plant Hire.
Outside of the group, Lafarge Tarmac is owed £2.5m, steel manufacturer BRC is owed £2.1m, while insurer Mitssui Sumitomo is owed £1.3m.
The total owed to trade creditors outside of the group when PC Harrington Contractors went into administration in April was £12m.
At the time, the company held just £900 in its two bank accounts, with a further £50,000 held by solicitors on its behalf.
According to the statement of administrators’ proposals, compiled by KPMG’s Howard Smith and Jonathan Marston, directors “identified a significant funding requirement” after a number of contract disputes and losses suffered on contracts.
The reports adds that “the company was named in several formal recovery actions by creditors” at the time of its administration.
The group considered a number of restructuring options, including the sale of HTC, before “it became apparent that none of these would generate sufficient cash to meet the losses being incurred by the company”.
The administrators concluded that the most likely result of the administration process will be dissolution of the company.