Henry Construction Projects - Case Update

Geoffrey Rowley and David Hudson of FRP Advisory, the joint administrators of collapsed London high-rise construction company Henry Construction, are seeking to claw back over £30 million paid to members of the Henry family and their associated companies, according to their most recent report.

Henry Construction entered administration on 8 June 2023, after a winding up petition brought against the company was widely advertised in the construction industry, causing the company’s subcontractors to make demands for payment and its debtors to stop making payments.

Since being appointed, the joint administrators have worked to secure the company’s electronic records, realise assets, conduct auctions, and have carried out investigations resulting in the commencement of a slew of claims against several parties connected to Mark Henry, a director of the company.

The first of these claims is a £10 million claim against Mark Henry’s mother, among others. According to the administrators, their investigations identified a £10 million dividend paid by Henry Construction to its parent company, Henry Group Holdings Limited ("Holdings"), and then subsequently paid by Holdings to Elizabeth Henry (a minority shareholder in Holdings, a former director of Henry Construction and Holdings and the mother of Mark Henry). The dividend was paid to Holdings on 19 January 2023, at a time when Holdings owed Henry Construction approximately £10 million, and paid on to Elizabeth Henry on 25 May 2023, shortly before the administration commenced. Holdings was placed into liquidation on 18 August 2023. Accordingly, the administrators have issued a claim against Mark Henry, John Noone (the other director of Henry Construction) and Elizabeth Henry as beneficiary of the funds.

Then there are approximately £15.8 million in claims against the “Keash Companies”, various companies associated with Therese Woulfe (Mark Henry's wife) and Liam Henry (Mark Henry's brother). The heads of claim include debt claims, unjust enrichment, and unconscionable receipt. The proceedings also include a claim in the alternative for breach of fiduciary duty against Henry Construction’s directors, Mark Henry and John Noone, deriving from the company's transactions with the Keash Companies. No further details have been provided on the substance of the claims.

Finally, there are claims against various members of the Henry family in connection with transactions allegedly entered into by the company for their personal benefit. Specifically, the administrators say they uncovered payments towards the purchase of and/or construction done for no charge at properties owned by Mark Henry and Therese Woulfe, and Sarah Dundon (Mark Henry's sister) and Sean Dundon. The company also reportedly paid approximately £2 million to HMRC to discharge the personal tax liabilities of Elizabeth Henry and William Henry (Mark Henry's deceased father). These and certain other payments are the subject of a £5.5 million claim against Mark Henry, John Noone, Elizabeth Henry, Sarah Dundon, Sean Dundon and Therese Woulfe.

The administrators are awaiting defences or amended defences on all of the claims. They also emphasise that there are other potential claims still being investigated that they have not disclosed due to their confidential nature.

Read the joint administrators’ most recent progress report HERE. They have been assisted by Mishcon de Reya and Hilco.