Henry creditors face more delays over missing accounts

The full extent of Henry Construction’s collapse may not come to light for at least another 12 months as investigators sift through a ‘chaotic’ accounts system left by the senior management and ex-staff attempt to wrangle compensation after being axed last year. 

HMRC is understood to be seeking a £1 million claim against Henry, while former employees could stand to receive in the region of £90,000 for loss of pay, pension contributions and holidays. 

And while it is expected ex-staff “will be paid in full”, the release of funds can only be finalised when a separate protective award claim against the business by some former employees is settled.  

Recovery of Henry’s records, which took four months to download, were found to be “expansive”, “poorly maintained” and “incomplete”.  

Its main assets were its debtor ledger from which £514,000 has already been recovered and plant and machinery/formwork and scaffold across more than 60 development sites which fetched around £1.9 million at auction.  

Further, around £800,000 in pre-payments is being sought from trade suppliers, insurers and warranty providers, and energy companies. 

Henry is expected to exit administration by Creditors’ Voluntary Liquidation (CVL) as there should be “sufficient funds” to pay unsecured creditors a dividend once FRP Advisory has finished its investigation.  

A CVL effectively involves the directors choosing to bring the business to an end, by winding the company up. 

However, given the size and complexity of the former contractor as well as numerous workstreams when it went under, its administration process has been extended and could now go on until June next year.  

Henry Construction Projects Limited filed for administration on 8 June last year trailing a string of legal claims, at which time all staff were made redundant and all construction works stopped immediately. 

At the time the £400 million turnover company was awash in reports of ‘nonpayment to contractors’ and a litany of winding up petitions filed by former suppliers.  

“It is anticipated that the company will exit administration by CVL as it is believed that there should be sufficient funds to pay a dividend to the unsecured creditors in due course once the asset realisation process and/or any recovery opportunities arising from the investigation process are concluded. The administration is extended to 7 June 2025,” said FRP. 

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