Hewden sell-off raises £120m but trade creditors get pennies

Aaron Morby 1 year ago
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Administrators for failed plant hirer Hewden have raised £120m from the sale of assets but trade contractors will get a meagre return on what they are owed.

The plant hire giant’s trade creditors are owed £41m but can only expect to recoup a paltry 4p for every £1,000 outstanding.

Ernst and Young revealed payment proposals in the latest update on the firm’s affairs, which was renamed HS Realisations in administration.

Among the chief trade creditors are mobile crane supplier Tadano which was owed £7.4m and tower lighting specialists Generac Mobile Products UK and Trime UK, owed £3.2m and £1m respectively.

Dealers Gunn JCB and Finning were each owed around £500,000.

A series of auctions of over 5,000 items of equipment, plant and cranes earlier this year raised £61m.

This swelled the coffers after a pre-pack deal with A-Plant to buy the powered access, power generation fleet and Interlift  materials handling business raised £29m.

Other hirers Morris Leslie, JK Ashbrook, Gap and John Nixon bought eight depots and plant raising a further £29m.

The business sale deal saved around 180 jobs.

Hewden’s main banking syndicate, led by Bank of America, has been paid in full to the tune of £100m. Czech Asset Management, whose security ranked behind the Syndicate, is expected to suffer a shortfall on the £56.4m it is owed.

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