Failed Burdens owes £63m to trade creditors

Aaron Morby 11 years ago

Trade creditors of failed civils and drainage products supplier Burdens will learn today what chance they have of clawing back some of the £63m owed to them.

The collapse of Burdens group has hit a huge swathe of the industry’s suppliers and manufacturers with some firms owed more than £4m.

According to administrators Duff & Phelps, WTB Trading, formerly Burdens, owes £63m to 1,684 unsecured creditors.

In the firm’s latest report, Duffy & Phelps expects there to be a shortfall of £28.8m for trade creditors after recouping debts and selling assets.

Secured creditors Lloyds Bank and GE Commercial Finance will be paid a total of £21m.

The creditors meeting at 11am today at the Place Hotel in Manchester will see administrators update creditors on progress raising funds and ask creditors to agree a partial repayment plan.

Burdens operated several companies and had stakes in many more, which has created a complex web of intercompany debt and interests.

WTB Trading’s big creditors

  • ACO Technologies  £1.9m
  • CPM Group  £2.7m
  • Cemex UK £1.3m
  • Marshalls £4.2m
  • Naylor Drainage £1.2m
  • Polypipe Civils £3.6m
  • Polypipe Building Products £1.0m
  • Saint Gobain Pam UK £4.6m
  • Tensar Int £1.1m
  • Viking Johnson £1.0m
  • Wavin £2.8m

The losses come despite Wolseley acquiring 22 Burdens’ branches in November for £18.5m.

Burdens traded from 38 depots prior to its collapse and turnover £280m.

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