ISG Construction - Case Update

Timothy Vance, Alan Hudson and Dan Edkins of EY, the joint administrators of ISG Construction et al., have yet to file their proposals, but have provided an update on the likely outcome for the construction giant’s creditors.

The company is the UK arm of international construction company ISG. Prior to entering administration on 20 September, the company employed about 2,200 people, held government contracts worth more than £1 billion and boasted private sector clients including Apple, Barclays and Google.

The company said the current situation arose due to legacy issues relating to loss-making contracts entered into between 2018 and 2020, and reportedly entered administration after attempts to secure a rescue deal failed.

Following their appointment, the joint administrators sent an update to creditors advising that no further work will be undertaken on existing UK contracts, including for construction, fit out and engineering services. Contractors were directed not to attend sites, which have been closed down, and to discuss collection of any equipment owned by them left over at the construction sites with the site owners directly.

It is not anticipated that there will be any funds available for a distribution to creditors, although the administrators are continuing their investigations into the company’s financial affairs.

The update to creditors can be found HERE.