Hewlett Construction entered into administration at the end of May owing £11m

GCF

Hewlett Construction entered administration last month owing creditors £11.2m, according to a report filed to Companies House by administrators P&A Partnership.

After entering administration on 27 May, the Leeds-based civil engineering firm made 140 staff redundant.

The P&A Partnership creditors report reveals Hewlett Construction faced “financial constraints” after purchasing the business and assets of Hewlett Civil Engineering Limited (HCEL) in early 2013, after that firm fell into administration in January that year.

These constraints were caused by Hewlett Construction being unable to novate as many contracts from the stricken HCEL as “had originally been anticipated”.

Further funding difficulties were encountered on loans Hewlett Construction obtained against a number of invoices - later cancelled by the funder - and because of an “adverse decision” in a key arbitration case on an undisclosed project.

P&A Partnerships said a dividend to unsecured creditors would be available “in due course”, but the level was dependant on how much monies could be recovered.

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