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GB Building collapse costs subcontractors £39m

May 6th, 2015

Hundreds of subcontractors hit by the collapse of the GB Group are owed £39m.

And administrators at BDO have conceded that trade suppliers are unlikely to see a penny of their cash

The Enquirer has seen the administrator’s report in the wake of the firm’s failure in early March.

It makes grim reading for subcontractors owed money for work on more than 40 former GB sites across the country.

GB Group and GB Building Solutions crashed owing more than £100m in total.

That figure includes £30m to unsecured trade creditors and a further £9m held in retentions.

The companies also owed £18m to performance bond underwriters with the balance made up of inter-company debts and cross indemnities.

BDO experts believe their will not be enough money raised from the company assets to pay the £6.75m it owes to Lloyds Bank.

The report warns: “Therefore, we do not believe there will  be any other money available to unsecured  creditors of the companies.”

The collapse of GB has already claimed a number of victims among trade contractors.

Stockport based pre-cast specialist SCC fell into administration after it lost out on a £1m payment from GB on its Leeds Hilton projects.

Leeds based civil engineer McFadden Construction was also forced into administration following a £700,000 loss on the same GB job.

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