IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, October 2024
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Dina Kovacevic. More information on all the stories and the link to subscribe to the newsletter is here.
Recent Insolvencies
ISG Construction et al., the UK arm of international construction giant ISG, entered administration on 20 September after attempts to secure a rescue deal failed. The company holds government contracts worth more than £1 billion and boasts private sector clients including Apple, Barclays and Google. It said the current situation arose due to legacy issues relating to loss-making contracts entered into between 2018 and 2020. Timothy Vance, Alan Hudson and Dan Edkins of EY were appointed joint administrators. Approximately 2,200 employees have been made redundant, while about 200 have been retained to assist in the wind-down of the business. Goldman Sachs Bank USA has a registered charge against the company.
Harland and Wolff Group Holdings, the Belfast-based shipbuilder that is best known for building the Titanic, has formally collapsed into administration after weeks of speculation, marking the second administration for the company in five years. The company, which employs about 60 people, has its main yard in Belfast with other operations in England and Scotland. Gavin Park and Matt Cowlishaw of Teneo were appointed joint administrators due in part to mounting financial losses caused by a scale up of operations. The company said the administrators would unfortunately be required to reduce headcount. Only the holding company is in administration, while the operational companies which run the yards continue to trade. Riverstone Credit Management and certain connected entities have registered charges against the company.
Hostmore, the UK operator of TGI Fridays, entered administration on 18 September, making it the latest victim in a long list of restaurant casualties. The chain has struggled with changing consumer preferences for healthier foods and less discretionary spending. 87 of the chain’s restaurants had already been put up for sale prior to the appointment of Julian Heathcote and Daniel Smith of Teneo as joint administrators. The sites are continuing to be marketed for sale in the administration, with approximately 4,500 jobs on the line. The administration only impacts the UK arm of the business.
Insights
Simon Beale and Margaret Rhodes of Macfarlanes share that the High Court has sanctioned Cineworld’s restructuring plan over the objections of certain landlords, but warn that we may still see a sequel to the present decision.
John Phillipou, SME Lending Managing Director at Paragon Bank, shares why, despite rising insolvency figures in the UK, recent economic indicators suggest a more nuanced picture and exhibit signs of recovery and growth.
The team at Squire Patton Boggs provides a helpful checklist for administrators dealing with an extension at the end of the first-year anniversary, including key considerations for dealing with creditors, determining whether to extend or convert to a CVL, and more.