ISG’s administrators have told subcontractors they don’t expect “there will be any funds available” to pay the money they are owed.
In a letter “to all known creditors” across five of the eight companies that filed for administration on 20 September – Central Services, Construction, Engineering Services, Fit Out and Retail – EY said that “at present, it is not anticipated that there will be any funds available for a distribution to creditors”.
“No further work will be undertaken on existing UK contracts, including for Construction, Fit Out and Engineering Services,” the document continued.
“Contractors are not required or authorised to attend sites, which have been closed down. We understand that some contractors will have equipment at construction sites. To discuss collection, please contact site owners directly.”
Unsecured claims
EY said that it will be preparing proposals under the Insolvency Act that will be available to all creditors within eight weeks from 20 September to indicate “any changes to dividend prospects”.
Any money owed by ISG before EY’s appointment will be considered unsecured claims against the company.
However, EY is still encouraging creditors to submit their claims through a dedicated insolvency portal using the guidance provided on EY’s website.
EY added: “Any sums due to any of the company arising after our appointment must be paid in full and without set-off against any debts incurred by the company prior to our appointment.”
