Equipment was removed from sites in days before London high-rise builder sank into administration
The administrator of collapsed London high-rise builder Henry Construction Projects has said it is making 鈥減ositive headway鈥� in its attempts to recover plant and equipment removed from the firm鈥檚 sites in the days before it sank into administration.
Hundreds of firms are owed more than 拢43m after the contractor鈥檚 demise earlier this summer, an administrator鈥檚 report has revealed.
Sixteen companies are owed at least 拢500,000 each with one firm owed more than 拢6m.
In its report filed at Companies House, FRP Advisory said in the days before it was formally appointed on 8 June, it became 鈥渆vident that there was a risk of substantial chattel assets being removed from sites. It was therefore important for an administrator to be appointed as soon as possible to take control of the situation.鈥�
But FRP admitted that 鈥渁 significant amount of plant was not at the expected locations鈥� when it began to draw up an inventory and that Henry鈥檚 plant and machinery register was 鈥渄eficient鈥�.
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Henry had 60 live sites at the time of its implosion and FRP said: 鈥淪everal of the landowners have reported that plant and machinery was being removed from the project sites in the days leading up to the appointment.鈥�
The fraught days before Henry鈥檚 collapse are detailed by FRP in its report with the administrator saying that subcontractors were 鈥渁pproaching developers to demand payment for continuing to work on site鈥� while Henry鈥檚 debtors were 鈥渃easing to make payments that were due鈥�.
FRP said that its efforts to recover missing plant and equipment were ongoing 鈥渁nd positive headway is being made鈥�.
But it admitted 鈥渟ignificant volumes鈥� of formwork and scaffolding had gone missing and that it had appointed an independent formwork and scaffold agent to undertake an audit.
It said a progress report on its recovery efforts would be published by the end of the year and added that several tower cranes owned by Henry have been sold to site owners and others to incoming replacement contractors.
FRP also said Henry held performance bonds with 12 surety providers. 鈥淲hile final surety claims are contingent on the final losses incurred by site owners, they could total up to 拢160m,鈥� the report added.
An auction of Henry assets at its Cranford, west London, office was held last month with the amount raised due to be known in the coming weeks.
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