Boss of failed Muirfield under fire over creditor records

Aaron Morby 9 years ago

The boss of failed Scottish builder Muirfield Contracts has come under fire from administrators for failing to provide the full picture of the company’s finances.

In the administrator’s report ahead of a creditors meeting this month, insolvency specialist Campbell Dallas said it had to go to significant effort to asses the financial and trading position of the Dundee-based contractor in the absence of directors and senior managers.

Joint administrator Derek Forsyth also warns creditors that director Thomas Stodart’s statement of affairs for Muirfield were materially different to company records.

Administrators also reveal they have launched legal action against three companies, which together are estimated to owe Muirfield over £12m.

One company Torridon bought development land just before Muirfield went into administration. It owes £1.2m to Muirfield from the transaction but itself fell into administration at the start of the month.

According to the administrator’s report another firm Enso 395, which owes £10.7m, and Vasanat, owing £443,000, are subject to court proceedings.

The company, which was founded by Maurice McKay, saw turnover peak at £48m with a workforce of around 400, including labour-only subcontractors.

In May, 2013 McKay sold the firm to ENSO 395, which appointed Stodart as joint chairman.

In his report, Stodart blamed loss-making contracts, and the firm’s inability to secure insurance-backed performance bonds for tying up £1.3m in operating cash as collateral. He also claims the firm had overstated profits in previous years.

The report said it was too early to draw any conclusions as investigations into the company’s affairs and events leading to its insolvency were ongoing.

Over 280 staff have been advised to submit claims for wages, holiday pay to the Redundancy Payments Office.

According to Stodart’s report subcontractors are owed £2.6m, a further £2.4m is owed in goods and services. £640,000 due to Her Majesty’s Revenue and Customs for PAYE and National Insurance, and £181,000 to HMRC for corporation tax.

Prospects of recovering cash for unsecured creditors depend on the outcome of the legal action under way.

A creditors meeting will be held at the Apex City Quay Hotel in Dundee on the 21 May.

Latest news

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
12 hours ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
9 hours ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
18 hours ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
18 hours ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
19 hours ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
19 hours ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
1 day ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
1 day ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
2 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
2 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
2 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
2 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
2 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
2 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
2 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
2 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
2 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
3 days ago

Wates-owned SES restructure delivers record profit and revenue

Building services contractor revenue soars to almost £300m
3 days ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature in housing association's line-up
3 days ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
3 days ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
3 days ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
6 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
6 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
6 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
6 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
6 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
6 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
7 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
7 days ago

Contractor services