Administrators for Henry Construction Projects have launched legal action to recover £10m paid to a former director before the company went under.
Investigations by FRP advisory have revealed the company paid £10m to parent company Henry Group Holdings, which is in liquidation, in January 2023.
The cash was subsequently paid in May 2023 to a shareholder who was a director of both companies.
Henry Construction Projects went into administration in June 2023.
FRP has demanded repayment of the money and launched legal action with the funds frozen while litigation continues.
While no names were disclosed in the creditors’ report outlining the action, court papers issued by lawyers acting for the administrator claim breach of fiduciary duty against Mark Henry, Mary Henry, John Noone and Henry Group Holdings.
When FRP was appointed £400m turnover Henry had 60 live sites with just 54 staff and a further 41 subcontracted quantity surveyors on the books.
Suppliers and subcontractors are owed £43m following the firm’s demise.
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