FRP says litigation involves director of both Henry Construction Projects and parent company
The administrator of collapsed London high-rise builder Henry Construction Projects has started legal proceedings to recover 拢10m paid to a former director before the firm sank into administration more than 18 months ago.
According to an update from FRP Advisory, 拢10m was paid to parent Henry Group Holdings in January 2023.
It said that Henry Group Holdings paid the sum to a minority shareholder in Henry Group Holdings who was also a director of both companies in May 2023. Henry Construction Projects went into administration the following month.
FRP said that last June it 鈥渂ecame aware of the identity of the recipient of the payment from Holdings鈥nd immediately wrote to their solicitors demanding repayment of the 拢10m. The individual did not repay the funds.鈥�
FRP said the parties agreed to ringfence the 拢10m in question 鈥減ursuant to agreed undertakings provided by the bank and the individual鈥�.
It added: 鈥淔ollowing the 拢10m being frozen, administrators issued proceedings against certain parties in order to recover the monies for the benefit of creditors.鈥�
It said litigation was ongoing 鈥渁nd further updates will be provided in future progress reports鈥�.
The claim has been brought against Henry Group Holdings, Elizabeth Mary Henry, Mark James Henry and John Noone, according to court records filed on 24 September last year.
The solicitors for all four defendants have been contacted for comment. It is not known whether they are contesting the proceedings.
Henry Group Holdings is in liquidation after a liquidator was appointed in October 2023.
Mark Henry is listed as an active director of Henry Group Holdings while Elizabeth Henry resigned as a director from the firm in March 2020.
Mark Henry also remains an active director of Henry Construction Projects, according to Companies House, while Noone is also listed as an active director of Henry Construction Projects. Records show that Elizabeth Henry resigned as a director at Henry Construction Projects in March 2020.
In previous updates, FRP said it took four months to download the firm鈥檚 electronic records and criticised Henry鈥檚 record keeping. It added the firm had 鈥渘umerous bank accounts鈥�.
Henry collapsed owing dozens of firms a total of more than 拢43m with eight firms each owed more than 拢1m.
In its last set of accounts, Henry Construction Projects posted an improved turnover of 拢402m in the year to June 2021.
The figure was up 7% on the previous 12 months with pre-tax profit during the period up 8% to 拢14m.
As well as high-rise, the firm also carried out civils, groundworks and reinforced concrete work.
No comments yet