Ten years after it was sold to the management team for £1, Haydon Mechanical & Electrical has filed for administration
London-based specialist Haydon Mechanical and Electrical have filed for administration after a creditor agreement failed to resolve cash flow issues.
The M&E firm operated across residential, commercial, healthcare and a variety of facilities management sectors for 38 years.
Recent results recorded a £66.2m turnover for the year ending December 31 2021, generating a pre-tax loss of £6.2m.
After cash flow pressures, Haydon entered a Corporate Voluntary Arrangement with creditors in August 2022, designed to return at least £7.2m to creditors starting in November 2022.
The company was already facing £7.2m of debt from its previous owner
Parent company Mears sold Haydon to its management in 2013 for £1, with an agreement to pay back £7m if the company was sold again with a loan repayment scheme in place.
Mears agreed to pause the repayment schedule for at least 18 months whilst Haydon resolved the debts of the CVA.
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