The housebuilder had debts of £225m when it collapsed in April, according to reports. Its two main banks, RBS and Lloyds, are set to recoup £51m in loans secured against land and property owned by McInerney Homes.
Administrators from KPMG reckon that only around £3m of a further £37.7m in floating charges is likely to be repaid and unsecured creditors owed more than £140m are unlikely to receive anything. Total shortfall to creditors is expected to top £176m.
Details are contained in a report to creditors prepared by joint administrators Paul Dumbell, Brian Green and Richard Heis of KPMG. The full report can be seen by clicking here.
The report, which lists all trade creditors, states that the firm's high cost base in a shrinking market meant the business "was no longer viable in its current form and additional cash to restructure the operation was not available". The level of debt carried by the firm also meant that a solvent sale of the business was unlikely.
Since being placed into administration, 10 of McInerney’s 21 sites have been transferred to a solvent arm of the company, Ludgate Hill Developments and a development management agreement has been signed with Miller Homes to complete the work.
Some 106 of McInerney Homes' 161 employees transferred to Miller but 95 of these have subsequently taken voluntary redundancy and only 11 remain with the company.
Got a story? Email news@theconstructionindex.co.uk
