Shaylor collapse hits trade contractors for £19m
August 20, 2019 – Shaylor’s collapse will leave unsecured trade creditors £19m out of pocket.
Administrator FRP has published the statement of affairs for the Midlands contractor revealing that the £142m turnover business owed £46.5m when it collpased.
Even secured creditor Allied Irish Bank, which says it is owed £14.5m, is expected to face a significant shortfall.
Unsecured creditors are likely to get 0.39p to the £1, equating to a total return of just £74,100.
Lead directors Stephen and Ritchie Shaylor are also listed as creditors, each owed £5.4m.
Administrator FRP revealed that it was first called in to look at options for raising additional funding in February, some five months after the Shaylor family sold 55% of parent company Shaylor Holdings to an employee ownership trust scheme.
This sale had been funded by a £13.5m load from AIB together with £3.2m investment from Shaylor Holdings.
In the end, FRP was not engaged to address short-term funding issues and instead Shaylor directors decided to inject £2m to shore up the firm’s finances.
But cashflow pressures continued to mount due to tightening credit terms, delays and subcontractors reducing activity on sites.
Allied Irish Bank refused further funding despite pledges from directors to inject further cash into the business.
Despite attempts to find buyers and investors time ran out and, FRP was called in to become administrators on 17 June.