Quintet of firms doing due diligence on projects being worked on by collapsed contractor
Five companies have begun due diligence on contracts that were being worked on by Clugston when it went bust last December.
KPMG, administrators to the collapsed firm, said it had approached 36 interested parties to assess their interest in 19 regional construction projects where Clugston had been the lead contractor.
It said it had received signed non-disclosure agreement paperwork from 19 of these parties, with five visiting Clugston鈥檚 head office to go over the numbers.
Several bids had been received, KPMG said, and discussions with interested firms were 鈥渙ngoing鈥�.
Scunthorpe-based Clugston went under in December with its construction arm owing suppliers and other trade creditors around 拢71.5m, after accumulating losses on energy from waste (EfW) contracts over a number of months.
Subcontractors were owed 拢11m, with employees a further 拢2.7m. The statement of liabilities also includes 拢25m in potential liquidated damages.
The group had posted a 拢470,000 loss in 2018, after reporting a 拢1m profit the previous year.
The company鈥檚 position was made worse in June last year by the collapse of a key subcontractor, which led to suppliers downing tools until Clugston paid them what they were owed, according to KPMG鈥檚 report.
KPMG, which in July last year had been hired by Clugston to review its finances with a view to turning round its fortunes, said 62 Clugston workers had been moved over to CNIM UK, which was in the joint venture which was building three EfW facilities.
Of the 324 staff working at the firm when it went under 145 were made redundant when it went into administration, with four resigning. A further 98 staff lost their jobs just before Christmas last year, and currently 11 had been retained to help with the administration process.
KPMG said creditors could expect to receive some money from the bust firm, 鈥渨here funds allow鈥�, although how much and when such payments might be made was currently unknown.
The administrators鈥� report said suppliers owed money by Clugston鈥檚 construction arm included Tarmac, which was in for 拢184,000, Gallagher Aggregates (owed 拢178,000) and Aggregate Industries (拢143,000).
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