Administrators say claims against Ardmore Construction are ‘substantial’

The administrators of Ardmore Construction Limited have provided an update on the claims process and legal disputes surrounding the collapsed contractor, as well as recent monies recovered that will provide a dividend to certain creditors. 

According to an administrators’ progress report, spanning February through to August this year, more than £3.4 million was recovered from HMRC by insolvency experts Begbies Traynor.

Administrators said the sum was a combination of overpayments and credits on Ardmore’s PAYE and National Insurance Contributions account with HMRC.

During the same period more than £18,500 was also recovered from company debtors, as well as several thousand pounds from utilities suppliers and former bankers.

“Based upon realisations to date and estimated future realisations, there will be sufficient funds available to enable a dividend to be paid to the unsecured creditors,” administrators said. 

However, the size of the dividend will be dependent on the final number of claims that are agreed.

Ongoing litigation includes Building Liability Order (BLO) and cladding claims, cladding and fire safety claims, settlement agreements and subcontractor contracts.

“We wish to impress upon creditors the substantial number of these claims, documents and the work involved in dealing with each one,” administrators said.

Adding: “We consider that there are likely to be sufficient funds for a dividend to be paid to HM Revenue Customs. We anticipate that they will be paid in full.”

Ardmore Construction Limited, which specialised in major projects across London and the Southeast, entered administration in August last year after a series of financial difficulties, including escalating legal costs and liabilities tied to fire safety defects under the Building Safety Act. At the time of its collapse, its had just £2.8 million in the bank

Then, in June this year, Ardmore Construction Group confirmed several of its operating companies had also entered administration following a BLO judgment.

Ardmore disputes the remediation claims and Building Liability Orders on legacy residential developments that led to the administration process. 

Earlier this month, group chairman Cormac Byrne lamented the company would cease operating as a main contractor, adding the decision to approve a restructure had “not been easy”.

The Company Voluntary Arrangements (CVA) plan, voted for by creditors, will see seven remaining group companies focus on activities that will deliver a “significantly better outcome” than liquidation.

Since its founding in 1974, Ardmore grew to be one of the UK’s leading main contractors. Landmark projects in the capital include Raffles London at The OWO, The Four Seasons at Ten Trinity Square, Corinthia London, The Ned and The Whitely.

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