Britain’s Ilke Homes’ modular construction subsidiary is set to be liquidated after administrators of the collapsed group decided there is not enough money left in the business to give anything back to creditors.
A statement of proposals published by administrator Alix Partners has also revealed that the group came painfully close to avoiding collapse in June, only for a rescue bid for the company to be withdrawn at the eleventh hour.
The statement of proposals confirmed figures contained in a statement of affairs published two weeks ago that showed the modular housing pioneer had debts of over £300m when it went under.
The document contains statements of proposals for the three Ilke group companies: Ilke Homes Ltd (IHL), which was responsible for the steel-frame modular factory in Flaxby; Ilke Homes Land Ltd (IHLL), responsible for its development activities; and Ilke Homes Holdings Ltd (IHHL), the group holding company.
Alix Partners’s proposals said that while the development business, IHLL, and the holding company, IHHL, will likely be able to recover a small amount of money to distribute beyond secured creditors, and will therefore continue in administration, there was no prospect of any creditors beyond the principal secured creditor, Homes England, recovering fundings from Ilke Homes Ltd. The document said: “The administrators therefore intend to make an application to court […] to request that the court places the company into compulsory liquidation with immediate effect.”
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Gary Fleisher, the Modcoach, author
