A MAJOR independent housebuilder owed hundreds of millions of pounds to various creditors when it collapsed, it has been revealed.
Stewart Milne Group, based in Aberdeen, folded their 35 active sites across Scotland in January – making more than 200 employees redundant on an online call with bosses.
Teneo Financial Advisory Limited, the firm appointed as joint administrators, lodged a document at Companies House this week revealing the state of the group finances.
Around £60m was owed to ordinary, unsecured creditors including suppliers, customers and contractors and £120m to the Bank of Scotland and Homes England. Interest “continues to accrue” on the bank debt.
READ MORE: Stewart Milne administrators issue statement on home buyers' deposits
The next biggest group was 329 employees who were owed £9m had their contractual redundancy entitlements been paid.
The total amount owed was 189m.
Teneo have said there is unlikely to be any payout to the bank – who would be first to be paid back – even after the sales of any assets.
Ordinary creditors, including employees, amounts to 1375 claims with more expected as the process continues. They also likely to receive nothing.
The next largest claim comes from Aberdeenshire firm WM Donald, a construction contractor, at £538,452.97 with a second claim for £214,012.70.
The group’s collapse left 10 projects unfinished.
These include Charleston in Cove, Aberdeen, Dunnottar Park in Stonehaven, Monarch’s Rise in Arbroath and Hunter’s Meadow in Auchteradrder, Perthshire.
Teneo’s document gives reasons for the decline, stating: “The group made an operating loss in the last two financial years, driven by weakened demand in the housing market compounded by increasing cost input pressure.
“Directors explored options to secure the future of the group and to restructure its debt.
“Rising costs, a challenging supply chain landscape and a notable decline in house-buyer demand meant difficult trading conditions throughout 2023.”
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