It is “too early to comment” on what will happen to deposits paid by buyers of Stewart Milne homes who are awaiting completion of the properties or have not yet moved in, following the housebuilder’s collapse, the administrators say.
Asked about this by The Herald, a spokesperson for the joint administrators at Teneo said: “It’s too early to comment on this given that we are still assessing all the options in respect of the group's Scottish development sites.”
It was announced on Monday that Aberdeen-based Stewart Milne Group had fallen into administration, with 217 of the workforce of more than 300 made redundant.
Founder Stewart Milne declared he was “devastated” by the “unexpected outcome” of a “sale process”, declaring that lender Lloyds Banking Group had not accepted either of two bids and had withdrawn funding.
READ MORE: Founder 'devastated' as housebuilder collapses, 217 jobs lost
One of the bids is believed to have come from Mr Milne.
Lloyds Banking Group said that it had provided "multiple maturity extensions to the borrowing" during "several years of support and forbearance".
Insolvency practitioners from Teneo Financial Advisory have been appointed as joint administrators of Stewart Milne Group Limited and six of its subsidiary entities.
The administrators have posted a statement on Stewart Milne Group’s website with information for customers, creditors, suppliers, subcontractors, and equipment providers.
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Under the heading of “customers”, it says: “If you have reserved a Stewart Milne property and have not yet moved in we will be contacting you directly. However, should you have an immediate query please contact SMReserved@teneo.com.
"If you currently live in a Stewart Milne property and have a query with regards outstanding works, please contact SMHomeowners@teneo.com for further information.”
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Addressing the effect on creditors, the administrators say: “All sums due by the companies, prior to 8 January 2024, will rank as an unsecured claim in the administration of the relevant company. All known creditors will be contacted providing details of how to submit a claim.
“All other creditor queries should be submitted to SMGeneral@teneo.com.”
Providing information for suppliers, the administrators say: “If you are a supplier, please note that no further orders should be fulfilled, and delivery to the sites should not be attempted, unless otherwise advised by the administrators.”
They add: “If you have outstanding invoices, please note that a claim will need to be submitted to the administrators…All known creditors will be contacted providing details of how to submit a claim.
All other supplier queries should be submitted to SMSuppliers@teneo.com.”
Detailing the effect on subcontractors, the administrators say: “Due to the cessation of trade, no further work should be undertaken by subcontractors. Please note, site access should not be attempted unless otherwise approved by the administrators.
“If you are a subcontractor and require site access to collect your equipment, please contact SMsubcontractors@teneo.com. As noted above, all known creditors will be contacted providing details of how to submit a claim. All other supplier queries should be submitted to SMsubcontractors@teneo.com.”
And, providing information for equipment providers, the administrators say: “Other than by exception, it is not expected that the Companies will require ongoing usage of hired plant/equipment. Please contact SMSuppliers@teneo.com to arrange collection of your equipment.”
They add: “Please note, site access should not be attempted until approved by the administrators.”
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