Midas collapse leaves workers with £4.5million in their pocket

Midas Construction collapsed with more than £60m in debt, including £4.5m to former employees, documents from the directors have revealed.

The Devon-based contractor, who had been in business for 45 years, collapsed in February. Teneo Financial Advisory Ltd has been appointed administrator of the Midas group and of Midas Construction Ltd.

The balance sheet shows that 61 Midas Group employees owed more than £1.4million in unpaid wages, with Midas Construction also owing £3.17million to 239 employees.

Suppliers to Midas Construction have claimed £51,274,938 in debt, with Midas Group assessed to owe suppliers £7,245,949.

The pension deficits of the two companies stood at £9million.

The two main Midas companies have been assessed by administrators as having over £8.3million in realizable assets, with creditors claiming a total of almost £70million, leaving a shortfall of £60million. pound sterling.

The total available to Midas Construction’s preferred creditors was £7.3m, with a further £1m assessed from Midas Group assets.

The inventory also laid bare the impact of insolvency on the construction supply chain.

A number of contractors also had debts amounting to hundreds of thousands of pounds. Midas Construction’s balance sheet showed it owed £241,000 to MKR Construction and a further £239,000 to D Wall Construction Services Ltd.

More than 1,500 companies in the supply chain had hundreds of smaller debts, including Contour Civil Engineering Ltd (£31,000), Certus Construction (£49,475), Bristol-based Churngold Construction (£75,704) and Balgores Roofing (£32,207).

In March it was announced that Morgan Sindall had taken over the construction of a hotel in Devon from Midas.

The previous month, the administrators of Teneo managed to sell part of Midas’ Mi-space real estate services to Bell Group, an interior and maintenance specialist. The sale saved 46 jobs.

The rest of the group went into administration with 303 people laid off.

Alice F. Ponder