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The collapse of Controlled


August 2005: Venture Capitalist 3i informs Controlled Demolition that it will not be giving it any more money, saying that the firm is a 'small legacy investment'.

September: Controlled launches an urgent search for a buyer and holds a series of discussions with three parties ? John Cuddy, joint managing director of Cuddy Group, Linkway Manufacturing owner Richard Burt and EDS boss Andy McGee ? over a two-week period.

September 19: Controlled Demolition is placed in administration at around 4 pm and is immediately sold, along with its assets, to Richard Burt and Linkway Manufacturing for £1.93 million.

No redundancies are made and the management team transfers to the new company, which remains trading from Controlled's Wakefield headquarters.

Once the company is in administration it is split in two and renamed, allowing the new company to be called and to trade under the name of Controlled Demolition. The two companies, still in administration with the old Controlled debts, collectively owe around £15 million to creditors. Joint administrator Ernst & Young says unsecured creditors will not get a penny.

October: Cont rolled boss Dar ren Palin promises that with the backing of the new owner Richard Burt, the company will be able to pay 90 per cent of subbies by Christmas from a cash fund set aside worth £2 million.

The Irish Government launches an investigation into how local subbies working on the £1.7 billion Ballymun regeneration project were left on the brink of financial ruin when Controlled Demolition went into administration.

Michael Martin, minister for the Department of Enterprise, Trade and Employment, orders a probe by the Irish company law enforcement body, the Office of the Director of Corporate Enforcement. Noel Ahern, minister for the Department of the Environment, Heritage and Local Government, monitors the legal implications.

December: Controlled Demolition seeks backing from its biggest creditor on the Ballymun Regeneration project, Northern Ireland-based Access & Support, to sue the client for £1 million.