ISG administrators double recoveries

Administrators of the collapsed UK contractor ISG Group have more than doubled recoveries from initial estimates, reporting receipts of over £26 million from trade debtors and client retentions as of 19 September 2025, more than double the £11.4 million forecast at appointment. The improved position reflects the success of an intensive recovery campaign led by administrators EY with specialist advisers Naismiths and Pinsent Masons, alongside the pursuit of a portfolio of claims under a litigation funding arrangement with Bench Walk and ATE insurance from Ignite Specialty Risk.

Timothy Vance, Alan Hudson and Dan Edkins of EY were appointed joint administrators of ISG Construction and several related entities in September 2024 after attempts to secure a rescue deal failed. Work on projects immediately ceased, and prospects for creditor returns initially seemed bleak.

In late 2024, the administrators reported that they were pursuing outstanding balances and seeking to negotiate early settlements where possible, working to line up litigation funding and ATE insurance. Their efforts certainly paid off, since they were able to secure a £5.3 million legal settlement under a litigation funding agreement with Bench Walk and ATE insurance from Ignite, generating £4.2 million in-period recoveries.

Three of the main ISG entities—ISG Construction, ISG Central Services, and ISG Retail—are now expected to pay employee preferential creditors in full, while staff of ISG Interior Services Group UK Ltd will receive about 7.2 pence in the pound once protective award proceedings conclude.

Meanwhile, HMRC’s £91 million secondary preferential claim for unpaid VAT, PAYE and NIC remains largely uncovered, and unsecured creditors—owed an estimated £885 million—are not expected to recover anything.

The report also discloses continued engagement with Cathexis UK Holdings IV Ltd and related entities over intercompany debts, the final disposal of property and IT assets, and bank interest earnings of £1.4 million since appointment. With ongoing claims, tax filings and employee payments still in progress, the administrations have been extended to September 2026.

Read the administrators’ most recent report here.