Firm collapsed last summer before finally stopping trading last October
Administrators for Cleveland Bridge have revealed that the cost of dealing with the steelwork specialist鈥檚 collapse has more than doubled to over 拢460,000.
FRP Advisory was appointed last July when the 150-year-old firm, best known in recent years for its work helping rebuild Wembley Stadium, sank into administration owing creditors nearly 拢22m.
In a progress report filed at Companies House this week, FRP said that the expected cost of the administration had originally been estimated at 拢207,000.
But increased expenses, such as site security, IT costs and energy bills, has meant the bill now stands at 拢468,000
Debt collection costs doubled to over 拢60,000 and site security expenses went up from 拢4,000 to nearly 拢93,000. PR costs jumped from an expected 拢4,000 to 拢9,500 after 鈥渕ore queries than anticipated were received from the media鈥�.
However, FRP said it brought in more than 拢5m from the sale of Cleveland Bridge鈥檚 long leasehold properties while an auction of the firm鈥檚 plant and equipment raked in a further 拢1.1m at the end of last year.
It said the decision for the company to continue trading until the middle of October last year brought in additional money, including a 拢500,000 bond from an overseas customer, which FRP said would have been 鈥渦nlikely in the event that the company had ceased trading immediately following the administration鈥�.
Secured creditor, finance firm 4Syte, which provided the contractor with 拢4m of emergency funding last June before calling in FRP a month later, has had its near 拢3m debt repaid.
But another secured creditor ARPIC, the Saudi Arabian oil and gas business which owned Cleveland Bridge for close to 20 years, has not been paid any money yet. FRP said it expects ARPIC鈥檚 claim to be between 拢6m and 拢8m but 鈥渢hey have not yet proved [it]鈥�.
Cleveland Bridge鈥檚 227 staff, who were owed 拢400,000 in missing wages, holiday pay and pension contributions, have also been paid back.
Unsecured creditors due a total of around 拢8m have again been told not to expect any money back following the collapse.
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