Rowecord collapsed with debts of £24m

Aaron Morby 11 years ago

Rowecord Engineering’s trade creditors and subcontractors are being told they may see some of the £15.6m they are owed.

Administrators from Grant Thornton have raised the prospect of sharing out proceeds from the sale of plant and machinery from the failed steelwork contractor.

In a creditors’ report they say the amount will depend on how much is raised in an online auction in the first week of July.

Administrators estimate subcontractors are owed £10.2m and other trade creditors £5.4m.

The Grant Thornton report also reveals that directors were on the verge of throwing in the towel more than a month before the £68m turnover firm finally collapsed on 29 April.

Rowecord was threatened with a winding up petition back in early March.

Directors managed to negotiate a commercial settlement with one of its major customers to released £10m to hold creditors at bay.

But Rowecord’s cashflow problems worsened after the loss of two jobs and an extra £10m was needed to fund the business a month later.

The Welsh Government offered a £5m loan to help Rowecord stagger on but directors turned it down because it was not enough to save the UK top-three ranked steelwork contractor.

Main unsecured creditors

  • Aberclad Industrial Roofing £783,000
  • Xervon Palmers £633,000
  • Ainscough £500,000
  • Marshall Steel Stairs £393,000
  • ABC Contract Services £360,000
  • Dutton International £357,000
  • Mill Engineering £253,000
  • Leven Bridge £238,000
  • Spartan UK £224,000
  • Adlington Welding Supplies £206,000
  • Speedy £206,000

Grant Thornton said it received up to 30 inquiries, three of which were about saving Rowecord.

Despite initial intrest no serious offers were forthcomming.

An online auction of machinery is now to be held by GoIndustry between 2 to 9 July, prior to the liquidation of the famous Welsh steelwork firm, which helped to build the London Olympics Aquatic Centre.

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