Social housing: Failed firm's debt level may double
Property services firm Connaught, which had council contrcats across Yorkshire, could owe more than twice the multimillion-pound debt originally thought after 50,000 missing invoices were discovered.Administrator KPMG, which was appointed 10 weeks ago, said yesterday management accounts led it to believe the social housing arm of Connaught owed £46m to thousands of unsecured creditors, ranging from a rugby club to a dairy supplier.
But as administrators compiled a creditors report, they discovered thousands of supplier invoices that had not been processed and now believe debts could rise to as much as 100m.
Connaught was thrown into turmoil after warning in June that Government spending cuts would hit revenues.
About 1,400 employees were made redundant.