Administrators have identified a near-£200m loss for ISG’s supply chain in their statutory analysis of all but one of the doomed contractor’s eight subsidiaries which went under last month.
Statements of affairs for seven of the eight ISG firms which entered administration last month were lodged with Companies House over the weekend.
The reports show the trades are set to lose out on around £195m, with the total set to creep up further once details for ISG Fit Out, the remaining firm to be assessed, are filed.
The main supply chain damage so far comes from three subsidiaries – ISG Construction, ISG Retail and ISG Engineering:
ISG Construction
The report for ISG’s contracting arm identifies total liabilities of £359.7m, which includes £91m in “issued and called up capital”, which is owed to the firm’s shareholder.
Between them, the preferential creditors – staff and HMRC – are set to receive just £10.1m out of the £26.2m they are owed.
ISG Construction’s supply chain, as unsecured creditors, will be left £89.9m out of pocket.
Meanwhile, a figure of £25m was reported as having been owed to unsecured staff creditors.
A total of 1,403 firms are listed by the administrators as owed money by ISG Construction, with 13 firms owed more than £1m each.
ISG Retail
The shops and hospitality arm has liabilities of £120.2m with administrators only expecting to recover £7.1m in assets, the administrators reported.
Preferential creditors are owed £13.3m (£12.2m relating to HMRC and £1.1m to employees), leaving them out of pocket by an expected £6.3m.
Meanwhile, unsecured employee creditors are owed an estimated £10.6m.
The report said that unsecured trade payables total £3.9m, subcontractor retentions are £7.9m and other subcontractor debts come to £28.3m.
This brings expected losses for firms in this subsidiary’s supply chain losses to a total of £40.1m.
ISG Engineering
Administrators say that they estimate recovering £4.2m in assets against total liabilities of £141.1m.
This means that the only secured creditor, HMRC, is set to lose £8.8m of the £13.0m it is owed. It will also lose £1.3m of unsecured corporation tax debt.
Unsecured trade creditors are set to be left £60.4m out of pocket.
ISG Interior Services
ISG Interior Services, meanwhile, has £87.1m in liabilities with just £315,000 in estimated realisable assets.
This will not be enough to pay the secured creditors of this subsidiary – employees (£1.8m) and HMRC (£2.3m).
The interior services firm’s only unsecured creditor is M&E design firm Mala Engineering, which was owed £47,000.
ISG Jackson
Administrators report the firm has no realisable assets and owes £300,000 to unsecured supply chain creditors.
ISG Central Services
The firm owes £261m to unsecured creditors but these are mostly accounted for through intercompany loans, leases and non-construction suppliers.
However, former employees with unsecured creditor status are set to lose out on an estimated £12.7m.
ISG UK Retail
A non-operational subsidiary but owes £24.6m to the shareholder and from a loan made by ISG Interior Services Group.
ISG Fit Out
Administrators had not published this subsidiary’s statement of affairs at the time of publication.
Timothy Vance, Alan Michael Hudson and Dan Edkins from Ernst & Young were installed as joint administrators for all eight firms on 20 September.
Their appointment came a day after Construction News broke the news that the firms had filed court applications to begin the administration process.
