McGill administration process extended to 2021 as asset recovery continues
The administration process for McGill & Co has been extended until January 2021 as administrators said the “level and timing” of distributions to unsecured creditors in the former Dundee building services firm remains unclear.
Almost 380 jobs were lost when McGill collapsed at the start of the year. Catalus Energy Investments then acquired the business as well as its order book, the majority of the company’s construction equipment, intellectual property and the right to use the company name and trademarks.
Catalus subsequently changed its name to McGill Scotland Ltd (MSL).
Joint administrators Blair Nimmo and Geoff Jacobs of KPMG said almost £1 million has been raised by selling the firm’s premises. This includes the £500,000 purchase of its Harrison Road headquarters in Dundee to MSL, the sale of its commercial property at Turnhouse Road in Dundee for £269,127 and the Barfillian Drive, Glasgow, facility for £220,000.
The firm has unsecured creditors of almost £10m, bank debt to Santander of £2.7m as well as preferential creditors of £343,000.
Joint administrator Mr Jacobs said: “A sale of the business and certain assets of the company completed on March 11 to Catalus Energy Investments Ltd.
“Certain moveable assets were sold as part of the sale of business process, and our plant agents have realised the company’s remaining moveable assets.
“In the period we have also concluded sales of the company’s three commercial properties.
“We have appointed specialist debt collection agents Acasta Consulting Scotland Ltd to review the ledger and assist us to pursue the outstanding balances where it is economical to do so.
“We anticipate that the bank will receive distributions under its standard securities and also its floating charge. However, it is likely that the bank will suffer a shortfall on its indebtedness.
“Based on current estimates we anticipate that preferential creditors will receive a dividend of 100p in the £. Based on current estimates, we anticipate that unsecured creditors will receive a dividend by virtue of the prescribed part. However, the level and timing of a distribution is uncertain.
“The administration was initially due to end on January 31 2020. The secured creditor and preferential creditors have recently approved a 12-month extension to January 31 2021.”
The book value of debtors, which includes work in progress, was put at £9.3m. To date debtor collections total £715,000.
From the date of appointment on February 1 to July 31, the administrators have worked for 1,752 hours at an average rate of £381.62 an hour for a total cost of £668,762.