New figures reveal debt
Dunne collapsed owing £30 million to creditors
Insolvency specialist FRP Advisory revealed details of the firm’s trading position across all six businesses in a report to creditors.
Keltbray, which acquired the company last month, paid £8.5m for its Bathgate head office and plant in a deal which was concluded four weeks after the firm collapsed laying off 574 staff.
It shows that at the two main divisions – Dunne Building and Civil Engineering and CLR Plant Hire – trade creditors and suppliers were owed nearly £15m. Associated companies were left almost £14m out of pocket.
Keltbray acquiewd property and plant from the administrators and re-hired the majority of workers. Under the deal Gordon Dunne became managing director.
Dunne ran into cash flow problems after taking a £4.5m hit in 2015 on two loss-making contracts and it called in administrators on 19 July.
Keltbray said it viewed the acquisition as an opportunity to broaden its capability and services portfolio, widen its geographical reach and to respond to market demands.
Dunne’s portfolio of contracts also included 100 Bishopsgate and One Blackfriars in London. It also worked on the Transport Museum and the Queen Elizabeth University Hospital in Glasgow (pictured). Turnover last year was £74m.
Most of Dunne’s existing contract work has been taken on by other contractors such as Byrne Bros and Getjar.
Sir Robert McAlpine said it would complete the construction of the Maggie’s Centre at Forth Valley General Hospital which was put on hold following Dunne’s collapse.