FRP Advisory: Highland housebuilder collapsed with £1m debt
Administrator FRP Advisory’s progress report on collapsed Inverness housebuilder Roy Homes has shown the firm owed more than £1 million to creditors when it ceased trading in January 2017.
The update, released by Companies House, shows that of the firm’s total debt, a sum of £215,797 owed to the Bank of Scotland has been settled following the sale of the company’s former headquarters, in Inverness’ Lotland Street.
The report also states that former employees, the firms’ “preferential creditors”, are expected to get a portion of the more than £18,000 they are owed relating to wage arrears, unpaid pension contributions and holiday pay.
FRP said it was, “currently estimated there will be sufficient funds available to make a distribution to preferential creditors in due course”, however, the exact amount would depend on total realisations.
This being the case, the 84 unsecured creditors listed in the report remain in the dark about whether there will be enough money left at all for the restitution of debts totalling £806,863.
The progress report states: “The level of dividend, if any, to unsecured creditors is dependent on the total amount of asset realisations.”
FRP added that six claims totalling £40,114 had also been made by unsecured creditors of sister firm Roy Homes Timber Frame.
On these debts, the administrators said it was unlikely there would be sufficient funds available to pay them.
Initially due to be completed last year, the period of administration for the two companies was extended by creditors and will now continue until next January.
FRP Advisory said the administrators had no comment further to that contained in the progress report.