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Collapsed engineer Morgan Tucker owed creditors £3m

Failed engineer Morgan Tucker collapsed owing an estimated £3m, according to the administrators’ latest report.

The Newark-based company was estimated by administrator FRP Advisory to owe a total of £3,038,952 to creditors when it entered administration on 30 May.

A total of 65 members of staff lost their jobs at Morgan Tucker after severe financial pressure over a number of months led to cashflow issues that forced the company into administration.

The statement of affairs carried out by FRP revealed that when it went bust the company was estimated to owe staff more than £226,000 in liabilities, including £169,912 in arrear wages, £33,670 in holiday pay and £23,199 in pension contributions.

Of this £226,781 in liabilities owed to staff, the statement revealed that only £22,962 of assets were available to pay these debts, leaving £203,819 unpaid.

An updated administrators’ report stated that any extra cash raised to pay for creditors would be dependent on surplus trade debtor realisations.

At the time of administration, a spokesman for FRP said: “The priority of the administrators for the time being is to assist those made redundant with their timely applications to the redundancy payments service.”

Morgan Tucker worked across major highway, transportation, civil engineering, structural, infrastructure and environmental consultancy projects, and had offices in Leeds, London, Nottingham, the Czech Republic and Oman.

High-profile jobs for the firm included the first phase of Embassy Gardens at Nine Elms in London, the BioCity research laboratory in Nottingham, and the Bow East Logistics Centre at the Olympic Park in Stratford.

The statement of affairs revealed that the estimated £3,038,952 owed included £528,571 to trade creditors, £286,513 to HMRC and £332,361 to loan companies.

The biggest unsecured creditor was the Funding Circle, one of the country’s biggest peer-to-peer funding firms, which was owed a total of £218,911.

Morgan Tucker owed more than £55,000 to local councils across the UK, including £19,000 to Islington Council.

The biggest trade creditor was Sheffield-based environmental consultant Enzygo, which was owed a total of £47,533.

Morgan Tucker was founded by Matthew Tucker in 2005 but he stepped down from the firm in February, with Steve Hall appointed acting managing director.

Mr Tucker was listed on the statement of affairs as one of the company’s four biggest shareholders, alongside Joanne Morgan and Daid Parton.

Ms Morgan and Mr Tucker owned a total of 4,500 shares each, while Mr Parton owned 500 shares.

The other major shareholder was private equity firm Foresight Group, which owned 3,167 shares after it invested £1m into the company in 2015. 

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