part time job

Aberdeen bypass firms owed £175k by collapsed specialist

Balfour Beatty and Galliford Try’s JV, which worked on the Aberdeen West Peripheral Route, was owed £175,000 by collapsed foundation specialist Aspin.

Administrators Quantuma revealed the figure in a report this week, which detailed that the firm owed 245 creditors more than £20m, with only £2.8m available in assets.

The largest amount owed by the firm, almost £16m, is to the owners who rescued it from a previous administration.

Carillion’s collapse in January 2018 meant Aspin suffered an £800,000 loss in money owed by the tier one contractor.

Aspin was then bought by equity investors Sandton Capital Partners for £1, in a move which also included an agreement to waive around £20m owed to previous shareholders.

However Quantuma’s report revealed this week that, as work dried up in the piling and foundations sector and the company struggled, Sandton had introduced the firm into £15.9m-worth of debt in the 18 months it owned it.

Joint administrator Sean Bucknall noted that after Quantuma became involved owners tried to sell the company but “no purchaser could be found in order to complete a going concern of the business”.

It went under in July, owing 245 creditors money. These included a £100,000 sum owed to HMRC.

Abredeen Roads Ltd, the JV formed of Balfour Beatty and Galliford Try to deliver the Aberdeen Western Peripheral Route, declined to comment on the £175,000 it was owed by Aspin.

Carillion was initially a third company in the joint venture but its role in the project was taken over by its partners after it went under.

The repeatedly delayed project was a source of numerous issues for the firms involved, with a loss of around £150m on the project contributing to Galliford’s decision to wind up its infrastructure business in Scotland and cut of around 350 jobs in May.

A costs dispute blocked the opening of the bypass in January, with transport secretary Michael Matheson strongly criticising the firms involved.

It emerged in July that the Galliford was still negotiating with Transport Scotland in a bid to recoup some of its costs on the route.

The post Aberdeen bypass firms owed £175k by collapsed specialist appeared first on Construction News.