Haydon Mechanical & Electrical has filed a notice of intention to appoint an administrator.
Latest results for the London based M&E specialist show it had a turnover of £66.2m for the year to December 31 2021 generating a pre-tax loss of £6.2m.
Haydon entered a Corporate Voluntary Arrangement with its creditors in August 2022 following cash flow pressures.
The CVA deal was designed to distribute at least £7.2m to creditors at the rate of £200,000 a month starting in November 2022 with suppliers getting at least 80p in the £1 back for their debts.
At the time of the CVA Haydon had a loan agreement in place with its former parent company Mears who sold the firm to its management for £1 in 2013. Mears agreed to postpone all loan repayments for at least 18 months while Haydon worked through the CVA.
One subcontractor said: “The supply chain have stood by Haydon when they needed them and now it looks like they will get the short straw again.”
Data and credit checking specialist Red Flag Alert highlighted the firms’ administration notice with its regular checks of high court construction insolvency applications.
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