The money is being claimed as having been paid to a higher-up within the company before the administration
They money is claimed to have been paid to a director one year before administration began, say the Henry construction administrators.
The administrators, FRP advisory, have launched legal action to claim the money back.
The money was paid to director of Henry Construction Projects and Henry Group Holdings
The former director received the £10m in May 2023, and then Henry Construction Projects went into administration a month later.
FRP has since demanded the money back, and the funds have been frozen until litigation has been completed.
When the administration process began, Henry had 60 live sites, with only 54 staff and 41 quantity surveyors subcontracted. All staff were made redundant and all work stopped.
As a result of the liquidation, suppliers and subcontractors are owed £43m in total.
It may take another half a year for the Henry construction administrators to reveal the full collapse
An administrators progress report states: “The administrators’ investigations have revealed that the company paid £10m to its parent company, Henry Group Holdings Limited, on 19 January 2023,”
“On 25 May 2023, shortly before the administration commenced and after the directors sought advice regarding formal insolvency options, Holdings paid the £10 million to a minority shareholder in Holdings and a former director of the company and Holdings.
“In June 2024, the administrators became aware of the identity of the recipient of the payment from Holdings was made and immediately wrote to their solicitors demanding repayment of the £10m.
“The individual did not repay the funds and therefore the administrators prepared an application for a proprietary injunction.
“Following the £10m being frozen, the administrators issued proceedings against certain parties in order to recover the monies for the benefit of creditors.”
“The litigation is ongoing and further updates will be provided in future progress reports.”
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