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Chase Norton owed £10m at its collapse

Collapsed West Midlands contractor Chase Norton went down owing creditors more than 10 million.

And a statement of affairs released by the administrators at Companies House shows that unsecured creditors will share just over 1.1 million.

The company, whose chairman was former Galliford Try deputy chief executive George Marsh, bit the dust last month after being hit by losses elsewhere at its parent company Chase Midland.

That firm had its accounts frozen by its banker Royal Bank of Scotland following falling sales at its house building arm.

Accountant PricewaterhouseCoopers has now completed the first stage of the administration and has begun inviting creditors to a meeting at the National Motorcycle Museum in Coventry on 4 September for an update.

The figures show that the largest creditor, the Inland Revenue, is owed just over 400,000. Groundworks specialist CJ Haughey is owed close to 280,000.

Only one of the firm’s existing contracts – a 5 million deal to build a business park at Bromsgrove in Worcestershire – has so far been sold on. Local rival Pettifer, which in its latest report and accounts revealed it had racked up a 6.9 million loss in the year to September 2007, has taken over the job.

All of the defunct contractor’s other outstanding projects have reverted to the control of their clients – meaning that the likely return to firms owed money on these jobs will be reduced.

At next month’s meeting, administrators will detail the efforts made to claw back money owed by Chase Midland – which includes the money held in the group bank account used by its parent.

Joint administrator Mark Hopkins said Chase Norton’s bank account was in the black but it had fallen because the group’s bank account had gone into the red.

Nearly 160 jobs went at Chase Midland while Chase Norton at the time of its collapse employed 123 people.

Related news:

Chase Norton parent goes bust

Chase Norton loses fight for life