The approval allows the companies to continue trading while repaying creditors under agreed terms following the collapse of Ardmore’s main contracting businesses in June.

Crucially, the CVAs also pave the way for chairman Cormac Byrne to launch an appeal against the High Court’s landmark Building Liability Order ruling and challenge the extent to which liabilities can be pushed across to other companies within a corporate group.

Business recovery specialist BTG is overseeing the arrangements covering Ardmore Group Holdings, Ardmore Group, Byrne Properties, Celebration Homes, Paddington Construction, Systemhaven and Byrne Estates (Kensal Green).

House builder Crest Nicholson and major bonding providers are understood to have backed the proposals, helping to carry the creditors’ vote on a CVA route.

The restructuring is designed to preserve the Byrne-controlled group’s remaining property interests rather than see them follow its contracting operations into administration.

The wider BLO legal battle originates from a £14.9m adjudication award secured by Crest Nicholson against Ardmore Construction, which is now in administration.

The High Court subsequently used powers under the Building Safety Act to make seven associated Ardmore companies jointly and severally liable for the sum. This opened up a claims route from other developers leaving related group companies facing potential claims of up to £300m.

That ruling has caused wider concern across the contracting industry because it raises the prospect of historic building safety liabilities being pursued against solvent sister or parent companies where the original contractor has failed or cannot meet the claim.

Major contractors with long residential track records are watching the case closely because of the potential exposure of wider group structures to legacy claims.

One construction legal source said the present interpretation of Building Liability Order powers could have a “devastating” impact on the industry and expose major tier one contractors and associated group companies to substantial historic liabilities.

An Ardmore spokesperson said: “Our focus is now on preserving value in the wider Group, protecting the continuing businesses, and pursuing the appeal against a judgment which we believe raises important questions for the wider industry.”