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Merit Insolvency Filings Reveal £25.7m Deficit and Connected-Party Asset Sale

Administrators’ filings blame cash‑flow pressure from delayed projects, disputed contract changes, a tax petition.

Overview

  • New documents show unsecured creditors face about £17.4m in likely unrecoverable claims, with administrators saying a payout is unlikely.
  • Interpath confirmed a 19 December disposal of assets to newly formed Merit Industrialised Construction Ltd for £396,000 plus VAT and at least £500,000 deferred.
  • The purchaser is connected to former group leadership, with Kirsty Wells named as ultimate beneficial owner and Modulex Modular Buildings set to provide significant investment.
  • All 284 employees were made redundant when administrators were appointed on 14 November, and staff can claim up to £800 for unpaid wages and holiday pay.
  • Work stopped on live schemes including Berwick Community Hospital and the Medicines Manufacturing Centre, while Santander expects partial recovery on a £13m facility and HMRC’s £537,000 claim remains uncertain.