Thu, 07 Oct 2021 | COMMERCIAL PROPERTY
It has been confirmed that an auction of the property and assets of collapsed engineering firm Cleveland Bridge will take place next month. The firm’s most recently available accounts at Companies House, for the year ending December 30 2019, show £7.1 million in fixed assets and close to £13.7 million in current assets.
Cleveland Bridge fell into administration in July 2021 as a result of issues including severe disruption to several of its infrastructure projects across the world as a result of COVID-19. Administrators from FRP Advisory then announced last month that the Darlington-based firm’s property and assets would be prepared for sale after they failed to find a buyer for the company.
At the time of the company’s collapse, its creditors were owed close to £22 million. The online auction will be managed by the Leeds office of Sanderson Weatherall and will include plant and equipment, such as lifting machinery, containers and transport vehicles, along with other property and assets.
The auction will take place on November 9, with bidding closing the following morning.
Aside from the effects of COVID-19, FRP Advisory said that the business had been impacted by rising steel prices and an apparent error in estimation on an £11 million project. The project took up the majority of Cleveland Bridge’s production hours at its main facility in Darlington during the first quarter of the year and, as a result of the error, was being carried out at zero gross profit.
In addition, the firm’s Saudi Arabian parent company ARPIC declined to provide £12 million to plug a funding gap in the summer.
One of the best ways to find properties below market price is to look at recent administrations.
Read more about pressures impacting the UK construction sector.
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