Most creditors are set to receive money owed by a civil engineering firm of between five and ten pence in the pound nearly four years after it collapsed.
PMC Civil Engineering went into administration in 2019 after rapid expansion which saw them struggle to manage the extra workload and resulted in ‘declining quality of work’.
The latest report from the liquidators says that unsecured creditors should receive a dividend by February 2023.
The company, based at Myrley House, Wimborne, has seen its turnover nearly double every year over the past four years, to £8.3m, according to previous directors’ reports.
But “poor quality of work” means that the company often has to redo work at its own expense or see customers cut their payments.
An earlier report said the company had missed out on tenders “due to industry perceptions of poor quality of work and competitors using this to their advantage”.
The company had 10 employees when it entered administration in June 2019.
In the latest report, Portland-based joint liquidators Michael Fortune and Michael Pallot Leonard Curtis said of the company’s unsecured creditors: “Payment of a dividend of between 5-10 pence in the pound is expected by February 2023”.
He added that this “will depend on the final costs and agreed creditor claims”.
The report said the company had three major contracts with Wessex Water, CJ Fry and Persimmon Homes.
Wessex Water settled its account, but negotiations are still ongoing with CG Fry and Persimmon, both of whom have filed claims against the company.
The report says the liquidators have reached a settlement over a possible lawsuit against director Michael Page, who withdrew money from the company shortly before management and claimed he had security over his assets because he lent the company money.
The report said that after a “considerable amount of time” spent in correspondence between solicitors, Page paid £150,000 in liquidators’ money and withdrew his claims as a creditor to the company.
Director Paul Cummings made an offer of £5,000 to settle a potential claim against him, which was rejected by the liquidators.
However, by the time a settlement was agreed with Mr. Page, Mr. Cummings’ financial situation had “worsened” and the liquidators had agreed to accept £5,000 and to waive any further claims from him as a creditor.
The joint liquidators said they expected to complete the liquidation within three to four months.