PC Harrington Contractors Owe £10m to External Suppliers
Posted on: 18/06/2015

After falling into administration it has been announced that PC Harrington Contractors (PCHC) owes more than £10m to suppliers and trade creditors.

Based upon an initial estimator by its administrator KPMG, PCHC debts include £2.5m to manufacturer Lafarge Tarmac Trading and £2.1m to BRC the steel reinforcement supplier.

A total of £11.9m worth of debts has been revealed to external companies; however a full statement of affairs has not yet been released. This statement may also include up to £16.4m in debts owed to other companies in the PC Harrington Groups who are not in administration.

The difficulties faced by PCHC have been accounted to contract disputes and several losses on a number of major contracts, causing extreme constraint on the cash flow. When KPMG was appointed as an administrator on 27th April, the firm had already ceased to trade.

When KPMG was appointed, PCHC held only £900 in their company bank accounts. However a surplus of £700,000 was obtained from solicitors holding and a VAT refund.

PCHC had no direct employees, obtaining labour instead from Crystal Formwork- who were deemed responsible for final pay and redundancies.

A spokesperson for KPMG said “the majority” of Crystal Formwork’s staff were “transferred to [group company] Structural Systems prior to the appointment of liquidators and the balance were made redundant.”

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