{"id":531182,"date":"2025-10-21T12:45:23","date_gmt":"2025-10-21T11:45:23","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=531182"},"modified":"2025-10-21T12:34:03","modified_gmt":"2025-10-21T11:34:03","slug":"isg-trade-debtor-recoveries-significantly-exceed-expectations","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/administrations\/isg-trade-debtor-recoveries-significantly-exceed-expectations-21-10-2025\/","title":{"rendered":"ISG trade debtor recoveries ‘significantly exceed’ expectations"},"content":{"rendered":"

Administrators for collapsed tier one contractor ISG have recovered double the amount of money from trade debtors than originally predicted.<\/span><\/p>\n

In their\u00a0latest progress report, Timothy Vance, Alan Michael Hudson and Dan Edkins of EY said they had recouped \u00a326.3m out of a book value of \u00a3241.7m since being appointed last September.<\/span><\/p>\n

The process is \u201cprogressing positively\u201d and the sums \u201cnow significantly exceed the estimated realisable value per the directors\u2019 statement of affairs [SoA] at the outset of the administrations\u201d, they said.<\/span><\/p>\n

The SoA estimated that just \u00a311.4m could be recouped from debtors to the eight ISG entities (see box below).<\/span><\/p>\n

According to EY\u2019s progress report, \u00a35.3m of the amount recovered was received after a legal claim was settled out of court.<\/span><\/p>\n

The administrators said they continue to \u201cactively pursue\u201d other claims in the courts, \u201cwith additional recoveries anticipated\u201d.<\/span><\/p>\n

Their report added that the administrators entered into a litigation funding agreement in July, \u201cwhich will allow the pursuit of a specific portfolio of material legal claims by way of adjudication or litigation\u201d.<\/span><\/p>\n

This agreement is backed by an insurance policy, meaning that the ISG companies can enter \u201cpotentially costly legal processes without recourse to the funds held in the insolvent estates\u201d, the administrators said.<\/span><\/p>\n

They added that this would \u201callow the pursuit of a specific portfolio of material legal claims by way of adjudication or litigation\u201d.<\/span><\/p>\n

The administrators said that full repayment was received last month of intercompany balances between ISG Engineering Services Ltd and two of parent company Cathexis Group\u2019s former firms: Yondr Group Ltd (\u00a31.4m) and Yondr Spain SLU (\u00a3100,000). Cathexis Group sold Yondr Group to DigitalBridge and La Caisse in July this year.\u00a0<\/span><\/p>\n

In all, the eight ISG firms were owed \u00a3252.2m from \u201c<\/span>ISG Group companies, the wider-Cathexis group and its parent companies\u201d<\/span>.<\/p>\n

The administrators are continuing to gather information and engage with Cathexis \u201cto agree settlement of other amounts due\u201d.<\/span><\/p>\n

But supply chain firms and other unsecured creditors are still unlikely to receive any of the<\/span> \u00a3885m they are currently owed<\/span><\/a>.<\/span><\/p>\n

That total could increase further as the administrators are still receiving claims, they added.<\/span><\/p>\n

The progress report said employees of three ISG entities, as primary preferential creditors, are expected to receive a full payout for arrears: ISG Central Services Ltd, ISG Construction Ltd and ISG Retail Ltd.<\/span><\/p>\n

But ISG Interior Services staff are only set to get 7.2p in the pound.<\/span><\/p>\n

And the administrators said any payout \u201cis unlikely to occur for at least six months as we await the issuance of all protective award claims\u201d.<\/span><\/p>\n

Secondary preferential creditor HMRC has combined claims of \u00a391m across the eight companies.<\/span><\/p>\n

The latest progress report also mentioned that Goldman Sachs Bank USA has forfeited its claim as a secured creditor \u201cand no longer has an economic interest\u201d in the administration of the eight ISG firms.<\/span><\/p>\n

The administration process has racked up \u00a33.4m in expenses to date, a total exceeding Vance, Hudson and Edkins\u2019 original estimates, \u201cowing to third-party professional and other legal fees\u201d.<\/span><\/p>\n

A total of \u00a31.4m in bank interest has been received since the ISG administrations began.<\/span><\/p>\n

The joint administrators said they \u201cfrequently review the cash balances held and continue to reinvest these balances as applicable in order to maximise the bank interest\u201d.<\/span><\/p>\n

The progress report also reiterated that the administration process had been<\/span> extended until September 2026<\/span><\/a> to conclude \u201ca number of outstanding matters\u201d.<\/span><\/p>\n

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Firms covered by the latest progress report<\/strong><\/p>\n