Osborne administration could go on for four years after extension

Administrators for collapsed Surrey-based developer Osborne have been granted a two-year extension, taking the administration to a total of four years.

The administration follows a one-year extension granted last April.

It is now expected to continue until April 2028 as book debts, retentions, work in progress, and pension refunds are realised.

So far, administrators RSM UK Restructuring Advisory have recovered just £28,000 of the £5 million owed to it while handling disputes and counterclaims.

Insolvency recovery specialists Naismiths have been instructed to pursue the outstanding sums, potentially through legal action and alternative dispute resolution, with solicitors Assersons handling counterclaims.

The administrators said: “Further details cannot currently be released, as this may prejudice outcomes, which remain uncertain. It is unclear if this work will result in a financial benefit for creditors.”

Its recovery relates so far to just a single project – the Woolwich town centre revamp.

“It is not yet possible to ascertain at present when the administration will end.”

Unsecured creditors are owed nearly £35 million, with HMRC owed a further £1.8 million and former employees also due £134,761 in salary arrears and holiday pay.

At the time of collapse in April 2024, Osborne had eight live contracts worth £1.8 million.

Its failure was attributed to “significant headwinds”, including high inflation, the lingering impacts of the pandemic and Brexit, and a slowdown in public sector procurement.

In its last available accounts to 30 September 2021, Osborne reported turnover of £325.8 million but owed £45.1 million, with 504 trade and expense creditors owed £25.8 million.

Amounts due from the group’s subsidiaries included £38.8 million from Osborne Construction and smaller sums from other companies, most of which have now been dissolved.

Only minimal recoveries have been made, including £2,500 from Osborne Homes which owed £6.6 million, though a small dividend is expected from Osborne Developments (Venta), which owed £600,000.

Administrators at RSM, who have been contacted for comment, said in their report that “it is not yet possible to ascertain at present when the administration will end”.

The next progress report is expected this month.

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