Allegations of pension misrepresentation at collapsed contractor

Allegations of pension misrepresentation at collapsed contractor

Collectors of collapsed contractor Henry W Pollard are looking out out extra than £15m from the firm, along with a £5m pension deficit which might per chance be probed over alleged “misrepresentations”.

Administrators of the Somerset-primarily based totally agency, which went below in June 2021 after 161 years of shopping and selling, talked about in an update posted to Companies Condo they had not anticipated claims to exceed £8.8m, however that unsecured collectors appreciate claimed £15.3m in total.

Some £5m of the £15.3m total is expounded to its pension deficit, which might per chance be enviornment to an investigation by directors Bishop Fleming.

“Of valuable instruct is the points raised by collectors […] regarding the directors’ alleged pension-connected misrepresentations in the firm’s financial statements,” the update by the directors talked about.

The update talked about that Bishop Fleming is looking out out further trusty recommendation as to “whether or not the subject need to be pursued further”.

It added: “We’re not at liberty to instruct further particulars at this stage.”

Around any other £5m being sought by collectors relates to four claims, totalling around £5m, which applied to Pollard’s reside contracts. Those were made for the reason that valuable evaluate of the contractor’s debts closing year.

There became no update on how distinguished unsecured collectors will obtain from the liquidation.

After Building News printed that Pollard had gone below closing year, one employee of a agency owed tens of hundreds of kilos by the contractor talked about that the agency’s demise had not been anticipated. Though some adjustments at board stage precipitated “a small of misfortune”, it had “ample working capital and shareholders funds”, they added at the time.

Pollard became headquartered in Bridgwater, with a regional situation of job in Plymouth, and worked throughout the South West. It operated as a classic constructing contractor in the non-public and public sectors, and most as of late had 41 workers on its books.

The firm reported a pre-tax income of £178,000 on income of £24.1m, per its most as a lot as the moment accounts for the year ending 31 March 2020. It had cash reserves of £1.9m at its year discontinuance.