The administrators of Henry Construction Projects Limited are attempting to recover £10 million from the company’s estate after claiming the money had been paid to a boss shortly before the contractor went into administration.

FRP Advisory found out in June last year the name of the individual who had allegedly received the sum a year prior and went after their solicitors demanding the money.
When the ‘former director failed to repay the £10 million’, administrators were preparing to launch an injunction, they said.
However, following an agreement between legal teams, the injunction was halted and the £10 million was ringfenced for the benefit of creditors.
The litigation is ongoing and further updates will be provided in due course, said FRP.
Heads of claim include but are not limited to ‘breach of the Insolvency Act, transaction defrauding creditors and knowing receipt’, administrators added.
“The administrators’ investigations have revealed that the company paid £10 million to its parent company, Henry Group Holdings Limited, on 19 January 2023,” an administrators’ progress report reads, dated the six months to December 2024.
“On 25 May 2023, shortly before the administration commenced and after the directors sought advice regarding formal insolvency options, Holdings paid the £10 million to a minority shareholder in Holdings and a former director of the company and Holdings.
“In June 2024, the administrators became aware of the identity of the recipient of the payment from Holdings was made and immediately wrote to their solicitors demanding repayment of the £10 million.
“The individual did not repay the funds and therefore the administrators prepared an application for a proprietary injunction.
“Following the £10 million being frozen, the administrators issued proceedings against certain parties in order to recover the monies for the benefit of creditors.”
It added: “The litigation is ongoing and further updates will be provided in future progress reports.”
Henry Construction Projects Limited filed for administration on 8 June 2023 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.
In July last year, it was revealed 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.
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