Firm collapse leaves £60m debts unpaid

THE collapse of the building arm of Devon construction giant Midas will leave debts of more than £46m unpaid, it can be revealed.

- By WILLIAM TELFORD

A new report from administrators for Midas Construction Ltd confirmed there will be no cash to pay more than £45m owed to hundreds of unsecured creditors, a £1.5m tax bill and almost £400,000 due to ex-employees.

The company is expected to be dissolved by next February, a full four years after the entire Midas Group went bust. Two other companies in the group have already been dissolved, meaning the overall Midas collapse will have left unpaid debts of more than £60m.

A newly published progress report, filed at Companies House by joint administrators at Teneo Financial Advisory Ltd, reveals the last hope of reclaiming up to £60m from disputed contracts has now gone, with only £259,000 recovered. It means there is not expected to be any way of paying 219 former workers claiming a combined £392,167 in unpaid wages/salaries, holiday pay, and pension contributions.