Construction firm rescued in pre-pack deal, after Vinci legal battle
44 jobs have been saved after a pre-pack administration at construction company Marshdale Construction.
The company was bought by former Marshdale employees Rachel Bradburn and Peter Howell, who are directors of a new company which Marshdale owner Ben Edgar has a 25% stake in.
The Wolverhampton-based company had been struggling after a dispute with Vinci which resulted in Steven Currie from Currie Young being appointed as administrator.
Edgar had sought advice on administration the day after a meeting with Vinci where it “became very clear at that moment that Vinci had no intention of paying the company any of the outstanding debt”, estimated at £2.3m.
Marshdale had been working with Vinci for five years but said its relationship changed when QS firm Close Consulting was appointed to take over the commercial aspects of Vinci. Marshdale claims it went on to “squeeze” the existing supply chain to reduce costs.
Some debts were repaid through an adjudication process, but Marshdale says that Vinci prevented all work from continuing and removed the firm’s security clearance and therefore it filed for repudiatory breach of contract and terminated all contracts.
In early 2024, amidst ongoing adjudication proceedings, Vinci proposed discussions for a settlement. However, a meeting was held in February, led by Rory Murphy, commercial director of Vinci Facilities Building Solutions who “vetoed any amicable solution by making spurious claims of defect which could not be evidenced” according to Marshdale.
Vinci advised Marshdale that the £2.3m debt or £1.7m settlement Marshdale offered was, in their eyes, a £1.06m debt, which put Marshdale into an insolvent position.
