Creditors of five ISG subsidiaries are unlikely to receive any money owed by the collapsed firm, administrators have warned.
In a letter sent on 30 September to creditors of five of the eight subsidiaries, Timothy Vance and Alan Michael Hudson from EY-Parthenon said they did not expect to recover any funds from ISG to pay its debts.
They wrote: “At present, it is not anticipated that there will be any funds available for a distribution to creditors.”
However, the administrators raised the possibility that the prospect of repayment might change as they continue investigating ISG’s finances.
They are due to present their proposals within eight weeks of their appointment on 20 September, meaning more information can be expected before mid-November.
The ISG subsidiaries that EY-Parthenon are known to have warned so far are: ISG Central Services Litd, ISG Construction Ltd, ISG Engineering Ltd, ISG Fit Out Ltd and ISG Retail Ltd.
Administrators also told subcontractors they are not authorised to enter former ISG sites, which have been shut down. Suppliers should contact site owners directly to discuss how to collect tools left behind, they said.
EY-Parthenon’s advice chimes with an email ISG chief executive Zoe Price sent to suppliers the evening the firm appointed administrators.
In an email apologising for the news, Price wrote: “We confirm that ISG sites are now closed, please do not make any attempt to gain access as this will be denied.
“Once the administrator is formally appointed, arrangements will be made between subcontractors and clients for the orderly collection of plant, materials and tools.”
Vance and Hudson also warned that debts due to ISG after it went into administration would have to be paid in full, even if ISG owed that company money before its collapse that will now likely not be paid back.
They added that firms should avoid fulfilling orders placed by ISG before its collapse unless explicitly told to by EY-Parthenon.
There was also an update on the fate of apprentices who had been training with ISG.
Build UK revealed that following an industry-wide appeal, 36 of the affected 140 new entrants had been helped to secure new roles in other firms so they can continue their development in the industry.
“We are expecting more affected apprentices to find new roles,” Build UK said.
