The administration period of a collapsed South London contractor has been extended.
Henley Construct went under last April owing creditors £6.7m, but new documents lodged with Companies House show its administration period will now run until 14 April 2025.
However, there is little hope that the 221 companies left out of pocket when the firm went down will recoup what they are owed.
Administrators 360 Insolvency said the extension was permitted “primarily to allow completion of asset realisations and a distribution to preferential creditors”.
Payments are expected to be made to former employees and, potentially, HMRC, but there is unlikely to be good news for suppliers, trade creditors and subcontractors.
Administrator Danny Allen of 360 Insolvency confirmed that, based on current information, he did not expect to be able to pay a dividend to non-preferential unsecured creditors.
Henley Construct specialised in residential developments. Among its suppliers with the biggest outstanding claims were Travis Perkins (£797,000), London Tower Crane Hire (£223,000) and BTR Building Services (£337,000).
HMRC and 35 employees already made redundant were set to receive payouts, although the tax body was expected to receive only 3.89p for every £1 it was owed.
Taxpayers were also due to be hit for £33,927 relating to a bounce-back loan taken out by Henley during the Covid-19 pandemic.
The five housing association schemes on which Henley had been working had become unviable when a shortage of building materials during the pandemic led to rapidly increasing prices, leaving the firm with no choice but to appoint administrators.
Construction News revealed that Henley Construct had placed most of its staff on unpaid leave earlier last year, citing issues such as the impact of Brexit, the pandemic and rising costs.
Its last published accounts, for the year to 31 December 2021, show the firm turned over £22.9m and made a pre-tax profit of £335,404, compared with a pre-tax loss of £1.45m in 2020, when its revenue was just £13.2m.
Sister company Intelligent Steel, based in County Durham, also entered liquidation last April, owing creditors £6.2m.
Most of the money it owed, some £3.95m, related to intercompany loans from related firms, including Henley Construct as its largest shareholder.
