Hundreds of creditors have been told there is “no prospect” of payment as administrators sift through the assets of collapsed Midas Construction Limited.
In its latest progress report, administrators Teneo Financial Advisory said it expects to recoup ‘insufficient asset realisations’ to pay back hundreds of Midas’ creditors, as part of an administration process which began in February 2022.
More than 350 creditors seeking well over £45 million from the company were told this week they will not be repaid, following a further review of the company’s assets and books conducted by Teneo between August 2024 and February this year.
This includes a more than £1.5 million tax bill sought by HMRC.
To date, administrators have received 219 claims totalling £392,167 from Midas employees who are owed money for salaries and pension contributions, whom Teneo is also “uncertain” will receive a payout.
Lloyds Bank, however, a secured creditor of Midas Group Limited and Midas Commerical Developments Limited (both formerly in administration), has had its debts paid in full.
“We do not anticipate there will be sufficient asset realisations to enable a distribution to be made to […] creditors,” an administrator’s progress report states.
Adding: “As there is no prospect of a distribution for unsecured creditors, we do not intend to undertake any work to agree any creditor claims received.
“This work will be performed only once dividend prospects are certain.”
The administration of Midas Construction Limited is currently due to end before February next year.
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