Michael J Lonsdale - Case Update

The joint administrators of construction giant Michael J Lonsdale have provided a bleak update on their anticipated future recoveries, sharing that remaining funds are mostly tied up in legal disputes where recoveries are unlikely.

Michael J Lonsdale, one of the UK’s biggest construction companies with offices in London and Langley, Berkshire, entered administration in October 2023, citing challenges including inflation, increased prices and the war in Ukraine. Jamie Taylor, Jeremy Karr and Dominik Thiel-Czerwinke of Begbies Traynor were appointed joint administrators.

Since their appointment, the joint administrators and their agents have worked to realise the company’s assets, including realising the company’s remaining physical assets and entering into discussions and settlement negotiations with the company’s debtors. Realisations currently total approximately £577,000, and the administrators’ agents are continuing with their endeavours to make further recoveries. However, they have advised that the majority of the company’s remaining debtor ledger balances are tied up in legal disputes, and that they expect “an uphill battle” in recovering these funds.

Given the uncertainty surrounding the amount of recovery which may be achieved from the company’s debtors, the joint administrators are presently unable to predict whether there will be a dividend to unsecured creditors.

The joint administrators’ latest progress report can be found here. They have been assisted by Kingsley Napley, Gordon Brothers, Leslie Keats and others.