Midas debts swell to £87m

Firms hit by Midas Group’s collapse last year have claimed more than £87m in debts from the contractor.

The firm called in administrators in February 2022 after it was hit by the postponement or delay to contracts amid the COVID-19 pandemic. At the time, Midas chair Stephen Hindley said the knock-on effects had “led to severe liquidity pressure and meant the group was no longer able to operate”.

Now, 711 suppliers, subcontractors and other firms have claimed Midas owed them a total of £87.1m.

Administrators have said it is “unlikely that sufficient funds will be realised” for the 711 unsecured creditors to be paid back what they are owed.

The administrators at Teneo have, though, managed to sell off two freehold properties belonging to Midas Group, as well as computer equipment. Some of that funded the paying-back of a £1.4m loan from the contractor’s main bank, while 277 former workers should also be paid what they are owed.

In total, former workers at the contractor claimed £590,000 worth of unpaid wages, holiday pay and pension contributions. In the administration process, 303 jobs were lost, but the sale of property-services group Mi-space saved 46 jobs.

Teneo has also extended the administration period until 8 February 2024. Within that timeframe, Teneo should be able to confirm whether any of the 711 unsecured creditors will receive anything at all.

In August, Teneo wrote to the Insolvency Service regarding concerns over business practices in the lead-up to the firm’s collapse.

The agency has legal powers to investigate any concerns regarding alleged misconduct by companies that have become insolvent, with disqualification as a director a potential action.

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