Wrekin firm’s £25m pension claim
Wednesday 13th May 2009, 2:00PM BST.
The pension scheme for Wrekin Construction workers is claiming nearly £25 million from the collapsed company – bringing the total amount owed to creditors to more than £40 million, administrators revealed today.
And the likely cash realised by the sale of the Gem of Tanzania, a ruby owned by the company, is likely to raise only a “fraction” of the £11 million reported worth listed in the firm’s company accounts.
Ian Best, of administrator Ernst & Young, told a meeting of creditors today there were also concerns about the conduct of the company’s directors in the time leading up to Wrekin’s collapse and transactions between Wrekin and its associated companies.
About £2 million of Wrekin’s cash was invested in other companies in the group, owned by businessman David Unwin, with three of those companies going into administration last month.
Mr Best told the meeting in Telford: “The books and records are not of the highest standard and that will be part of the considerations in our ongoing duty to report on the directors’ conduct.
“Choosing my words very carefully, there are some transactions that have caused the administrators significant concerns and those transactions are being pursued.
It is pursuing the funds which were either invested or transferred to the other companies which is the main concern at the moment. And what I can tell you is two related companies are likely to go into liquidation tomorrow.”
Mr Best also told the meeting, attended by about 50 representatives of more than 1,000 creditors, a claim had been submitted by the company pension scheme and pension protection fund for just under £25 million.
“That is clearly higher than the balance sheet value and that is likely to swell the total creditors to above £40 million,” he said.
But creditors were told it was unlikely the sale of the ruby known as the Gem of Tanzania would reach anywhere near its reported £11 million value, saying it looked like the forged valuation of the stone had been a “cut and paste” from a website.
By Business Editor Amy Bould
Shropshire Star on Twitter
Keep updated with the latest breaking news and content on our Twitter feed.
Lifestyle
Interactive Dining Out map
Hundreds of reviews by the Shropshire Star and Express & Star's teams to help you decide where to eat.
Entertainment
All the film reviews
Before you plan a trip to the pictures, get our critics' verdicts on all the latest movie releases.
OUR NEW APP
Get the new Shropshire Star app
Download the Shropshire Star’s new app to your iPad or iPhone to get one week of access to our digital newspapers absolutely FREE.
shropshirestar.com
Popular sections
Useful links
Above any other claims towards Wrekin the workers should be the first in line to have pensions secured. Any other businesses owed monies can wait until the loyal workers have been dealt with.
Report abuse
What about the countless local suppliers to Wrekin employing local people, Y Mab Darogan?
Report abuse
Will Ratners get paid?
Report abuse
The local suppliers can afford to take a loss H. St. John Peasbody for many of the workers at Wrekin this pension is a essential lifeline for when they retire.
People must come FIRST before businesses and profit
Report abuse
I was in a similar position a few years back when the firm i orked for went into administration owing our pension fund £21M and the tax man another £5M.
Our pension has now been taken under the governments Protection Funds wing so I should get 90% of my pension.
Its the other suppliers that get hammered and never recover. Lets hope they get something back.
Report abuse
y mab darogan you need to go back to school and educate yorself on the reality of whats happening to these suppliers most of which are self employed what about there pensions and wages they will end up with 10p in the pound at best at least wrekins workers will get most if not all there entitlments self employed people cant claim dole for at least six months after they come out of work
Report abuse
Sam I really doubt many suppliers are on the breadline
Most swan any in fancy cars and big houses etc
The average Wrekin employee will face a retirement on the breadline if they do not get the righful pensions from the creditors
Report abuse
How could Greenwood “rant” to the press re the meanness of the banks? The management only have themselves to blame for the ruin of a once very good company. They should be ashamed! The pain exerted to others should always be on their conscience!
Report abuse
You do spout a load of drivel at times Y Mab!
Was your comment about Wrekin’s suppliers based on personal knowledge? The commonest reason for small businesses failing is non or late payment by customers – with larger businesses being the worst offenders.
I agree with you that the treatment of employees is often shocking, but even they are better protected than small suppliers.
And what exactly do you mean when you say “if they do not get the rightful treatment from the creditors”? The creditors are the people (including ex-employees) who are owed money by the company. Grammar isn’t your strong point is it?
Report abuse
the people the workers must be the priorty for all debt repayments – if not they will only end up on the state pension more – so its in all our interest to make sure they get a fair deal
Report abuse
Y Mab, When Wrekin first went bust weren’t you blaming the bank ? Many local suppliers are on the breadline, and to suggest most “swan” around is both ignorant and ill informed, You seem to have a habit of shouting your mouth off before knowing the facts.
Report abuse