Patton Group administrators raise £1.38m in property sales
- 6 June 2013
- From the section Northern Ireland
The administrators of the failed Patton construction group say they have raised £1.38m from property sales.
Nine properties have been sold including the firm's former workshops on the Raceview Road in Broughshane.
A further 26 properties have been agreed for sale, which should raise another £4.8m.
In addition £3.9m has been received for work the firm did before it went bust and £1.2m was raised from an auction of plant and machinery.
The County Antrim-based construction firm collapsed in November 2012 costing creditors more than £60m.
The proceeds of the property sales will go to the firm's secured creditors - mainly Danske Bank - while subcontractors and suppliers will not get any of their money back.
The Patton administrators, Keenan Corporate Finance, say they have also employed a subcontractor to finish work at various Patton housing sites.
The Patton group came under financial pressure as part of the economic downturn and faced reduced activity levels and lower profit margins.
This was exacerbated when a customer entered administration without paying for work and a Patton subsidiary in England went bust.
This put the business under severe cash flow pressures and the directors were unable to raise new finance.