Sheffield firms among 500 creditors owed £22.5m when Leeds builder went bust
At the time it was working on 10 construction sites
Torsion Construction had 500 creditors, including 11 Sheffield companies, when it went under in July, an administrators’ report states.
At the time it was working on 10 construction sites, including Hollis Croft on Tenter Street in Sheffield city centre.
The 17-storey development has been abandoned.
A report from administrators Interpath states: “Based on current estimates, it is highly unlikely that there will be a dividend to unsecured creditors.”
They include Sheffield firms Fletchers Waste Management, owed £31,028, Orona Ltd, owed, £19,689 and Sheffield City Council, owed £17,996.
Other companies set to lose out include MCE Decorators, G Sanders Builder, Complete Business Solutions, SP Smith Painting Contractors, Landscape Research Office, SK Building and Joinery, JML Building Services and Rostek UK.
The company had 115 staff who were owed £400,00, the report states.
But it is ‘uncertain’ whether they will receive any money.
It also owed £1.4m to HMRC.
Pay outs will depend on administrators realising £11.6m in ‘book debts’ owed to the firm by customers for goods, services, or work supplied on credit.
The report, dated September 8, adds: ‘To date, there have been no book debt realisations’.
It also states why the company went under: ‘As its cash position continued to deteriorate, the company came under increasing creditor pressure in the form of several statutory demands and threats of winding up petitions.
‘As such, the directors resolved that insolvency was unavoidable’.
Interpath administrators estimate their fees could be £1.6m, based on hourly charges of up to £1,320-per-hour. Total expenses could be £1.2m.
Hollis Croft was being funded by the Housing Growth Partnership, which is backed by Lloyds Bank and Homes England.
In August, administrator James Clark, of Interpath, said HGP had taken control of the site and was in the process of engaging another construction company, aiming to avoid a “big break” in activity.
At the time, Metropolitan CCTV said it was still “fully covering” the site.
Lloyds did not comment.