ADMINISTRATORS winding up Aberdeen housebuilder Stewart Milne Group Limited and its subsidiaries have charged more than £6 million in just six months.
In January, Teneo Financial Advisory was selected to oversee the financial affairs of Stewart Milne Group (SMG) and its five related entities.
A summary of the financial activities during the initial six months of the administration reveals that Teneo has billed for an extensive amount of work, averaging over £900 per hour, totaling more than £6,173,209. This equates to an administration fee of over £1 million per month, with Teneo yet to receive any payments.
There are substantial debts within the businesses. Bank of Scotland, a preferential creditor, is owed £107.9m while HMRC, a secondary creditor, is due around £1.7m. It is anticipated that there will be insufficient funds to settle the claims of over 300,000 unsecured creditors, who are owed more than £330 million.
The Teneo report said: “No fees have been drawn to date as we have not yet received approval from relevant creditors.
“We do not expect to recover our time costs in full. Any unpaid balance will be written off as irrecoverable.”
The financial advisory business declined to comment on the amount of fees it is charging.
The collapse of Stewart Milne Group in January led to hundreds of jobs losses.
