Administrators dealing with collapsed contractor Tolent have officially obtained a two-year extension to the process.
In an update, restructuring specialist Interpath revealed it had been granted a 24-month extension by the courts.
“The administration is currently due to end on 12 February 2027,” the update said.
Tolent, which was one of North East England’s largest contractors, collapsed in February 2023 owing around £76m.
The firm’s failure was blamed on a series of major losses on a scheme in Durham, as well as tightening credit conditions.
Interpath had warned in a progress report last year that the administration process could drag on for “several years”.
The insolvency specialist had pointed to “complexities surrounding the contracts and retentions” as the reason for the lengthy process.
CN also understands that some of Tolent’s remaining assets include residential property, which the administrators are in the process of selling. The contractor also owned development land, which is adding complexity to the process.
In its latest update, Interpath also revealed it was in process of appointing a new quantity surveyor to help collect Tolent’s debts. The firm Gateley Vinden had been used but Interpath said “changes” at the company meant a new appointment was necessary.
So far, Tolent’s secured creditor, IGF, has received £625,000 but is owed £4.6m. The debt is likely to be repaid in full.
However, Interpath confirmed it was “highly unlikely” that any money would be paid to ordinary preferential creditors, secondary preferential creditors or unsecured creditors.
Interpath estimates that employees are owed £564,459 and HMRC is owed £2.7m, but it added that £1.6m has been recovered from debtors since the administration process began.
Tolent was placed 67th in the CN100 2022 ranking of top contractors, with turnover of £198m.
Last year, Unite won an employment tribunal against Tolent after the firm failed to inform the union that it was going under before it made more than 300 employees redundant.
