ISG<\/a> firms (see box below), published on Wednesday (30 April), EY\u2019s Timothy Graham and Alan Hudson said they were dealing with 1,650\u00a0 lodged in the Employment Tribunal.<\/p>\nThe administrators said they had made 2,400 staff redundant from the \u00a32.2bn-turnover firm, through multiple rounds.<\/p>\n
More than one person can bring a singular claim against an employer, so the total number of staff in the Employment Tribunal cases could be higher than 1,650.<\/p>\n
The protective award claims \u2013 all concerning staff consultations prior to redundancy \u2013 are currently being addressed, and Graham and Hudson said EY was \u201cproviding necessary consents and updates to the tribunals\u201d.<\/p>\n
Elsewhere in the report, administrators revealed that when they came on board, the eight firms had a total of 723 projects.<\/p>\n
Of these, practical completion had been reached on 539 schemes with a retention balance outstanding, while 184 were either in progress or at preconstruction stage.<\/p>\n
So far, the administrators have spent 10,469 hours on the administration process \u2013 but Graham and Hudson warned that the process could still \u201ctake some years\u201d.<\/p>\n
In particular, they pointed to the \u201cinherently complex\u201d processing of claims from ISG\u2019s debtors, as it could see \u201csignificant contractual counterclaims\u201d come in.<\/p>\n
So far, the administrators have recovered around \u00a319.2m owed to ISG in retention payments and trade debtors, \u201cwhich has exceeded the total directors\u2019 estimated realisable value\u201d, they said.<\/p>\n
Administrators hope to recoup more money via \u201ca number\u201d of legal claims with \u201csignificant individual values\u201d, the majority of which were ongoing at the time of the firm\u2019s collapse.<\/p>\n
They also highlighted an undisclosed number of claims where they believe \u201cthe counterparty has taken an opportunistic and unjustified position to try to avoid further payments\u201d to ISG on contracts that were live at the time of the contractor\u2019s demise.<\/p>\n
\u201cAdjudication\/litigation is now likely to be required,\u201d Graham and Hudson added.<\/p>\n
The administrators said they had retained \u201ckey individuals\u201d from the ISG group on a consultancy basis to help prepare documentation involved in any legal actions.<\/p>\n
When they collapsed, the eight firms being administered by EY were also owed \u00a3252.2m by other ISG group entities, \u201clocated both within the UK and overseas, which are now in local insolvency processes, resulting in nil recoveries\u201d, the report said.<\/p>\n
An additional \u00a34.5m is owed \u201cby a combination of the ultimate parent company Cathexis UK Holdings IV Limited and wider group companies including Yondr Group Limited\u201d, according to the administrators.<\/p>\n
Graham and Hudson also confirmed that they \u201ccontinue to receive claims\u201d from a mass of trade creditors.<\/p>\n
They added: \u201c[We have] estimated that non-preferential, unsecured claims will be in the region of \u00a3885m,\u201d confirming an amount first identified in November.<\/p>\n
These creditors include the supply chain\u00a0and former employees, as well as some debts to HMRC, for example around corporation tax.<\/p>\n
The administrators also reiterated that they do not expect the unsecured creditors to receive anything from the administration process.<\/p>\n
Besides the eight firms for which EY is the administrator, Construction News\u00a0<\/em>revealed last week that 11 other firms in the ISG family went straight into liquidation<\/a>.<\/p>\nAzets \u2013 which was appointed as liquidator to those 11 firms \u2013 is yet to publish detailed documents on the liquidation process.<\/p>\n
\n
ISG firms covered by the EY administrators’ report<\/strong><\/p>\n\nISG Central Services Ltd<\/li>\n ISG Construction Ltd<\/li>\n ISG Engineering Services Ltd<\/li>\n ISG Fit Out Ltd<\/li>\n ISG Interior Services Group UK Ltd<\/li>\n ISG Jackson Ltd<\/li>\n ISG Retail Ltd<\/li>\n ISG UK Retail Ltd<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"More than two thirds of ISG\u2019s former staff are pursuing legal claims against over the way they were made redundant, according to administrators. In their latest update on the administration of eight ISG firms (see box below), published on Wednesday (30 April), EY\u2019s Timothy Graham and Alan Hudson said they were dealing with 1,650\u00a0 lodged …<\/p>\n","protected":false},"author":90643,"featured_media":507202,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[554,552,535,57171],"tags":[],"yoast_head":"\n