Connaught debt to reach £100m after bills found
Collapsed property services firm Connaught’s debts could pass £100m after the administrator KPMG discovered 50,000 additional invoices.
Bills for everything from Dairy Crest milk to RBS bank loans have been left unpaid, according to a report by KPMG following Connaught’s collapse in September.
Unsecured lenders exposed to the firm’s social maintenance arm will recover at most one pence per pound owed, KPMG said.
“We are still going through the invoices found recently,” a KPMG spokesperson told City PM yesterday. “The total amount owed could well rise past £100m, once the tax invoices are included.”
The company’s accounts had originally revealed debts of £46m, plus £22m owed to HM Revenue and Customs.
Around £600,000 has been located to pay back creditors, though KPMG is in talks to recover and sell a £1m property believed to be owned by Connaught.
KPMG has contacted lawyers working for one of Connaught’s subsidiaries, which owned the mixed retail and storage building in Tooting .