Blencowe Scaffolding’s administrators have detailed a £620,000 sale of scaffolding equipment in newly filed proposals which forecast no payout for unsecured creditors.
The report, filed at Companies House on 7 October, says Aiseandan Plant Limited bought equipment held at the contractor’s Salisbury, Eastleigh and Basingstoke premises, together with scaffolding on seven of its largest live sites.
The sale completed on 17 August, five days after Andrew Hook and Julie Anne Palmer of BTG Begbies Traynor (Central) LLP were appointed joint administrators.
Scaffmag reported the administration notice on 14 August, when the appointment had not yet appeared in the publicly available Companies House filing history. The proposals confirm that Blencowe entered administration on 12 August.
The £620,000 agreement comprised £300,000 payable on completion, a further £83,571 due 28 days later and £236,429 payable as equipment was recovered from the seven sites. The report says the first £383,571 had been received by the date of the proposals, 25 September.
VAT applies to the sale, which the administrators state was an asset transaction rather than a transfer of a going concern.
Live-site work arrangement
PHD Modular Access Services Limited, described in the report as a company connected to Aiseandan, was engaged as a subcontractor to carry out continuing work on the live sites.
Under the arrangement, 15% of the remaining contract value on the relevant sites is allocated to the administration estate, with the balance going to PHD. The agreement also included two additional sites to assist with debt collection.
The administrators estimate that the arrangement will realise around £89,212 for the estate after applying a 20% provision to allow for changes in the final agreed value. Recoveries depend on the work completed, invoiced and collected by PHD.
No unsecured dividend expected
The proposals put estimated unsecured creditor claims at £880,764.42. Based on recoveries to date and expected future realisations, the administrators say there will be insufficient funds to pay those creditors a dividend.
The report also sets out the marketing process preceding the equipment sale. It generated 29 expressions of interest and three offers, but the administrators say two of those offers could not proceed because of funding or transaction risks.
They concluded that extending the marketing period was unlikely to secure a higher break-up offer and would add costs, including rent and insurance.
The proposals are dated 25 September and include a separate report on the sale sent to creditors on 21 August. The newly filed documents provide further detail on the August transaction and the expected outcome for creditors.
