Dawnus: Collapsed construction firm owed debts of 拢50m

Image caption, The Swansea firm went into administration in March
  • Author, Brian Meechan
  • Role, 成人快手 Wales business correspondent

Construction company Dawnus collapsed owing almost 拢50m which is "highly unlikely" to be repaid, according to administrators Grant Thornton.

The Swansea-based firm owed unsecured debts of 拢40.5m to other businesses, 拢5m to its employees, and 拢3m in taxes.

A secured loan of 拢1.5m made by the Welsh Government may be paid back, but potentially with some shortfall.

It said it continued to work closely with the administrator to recoup the money owed.

Economy minister Ken Skates had previously said that he was confident it would be paid back.

Workers may be able to claim for some payments from the UK government's .

Around 700 people were working for the Swansea-based Dawnus Group or its subcontractors when it went under in March.

A total of 44 construction projects in Wales and England were halted at the time, including work on Swansea's Kingsway, schools in Powys, and the 拢15m Manchester-Salford .

The secured creditors include the Welsh Government, HSBC and Lloyds Banks.

The Grant Thornton report revealed its experts were first called in by the Dawnus directors in December 2017 because the firm was facing a major cash shortfall.

Despite a cash injection from the Welsh Government and HSBC in March 2018, the finances of the Dawnus Group continued to deteriorate throughout 2018 and in December unsuccessful attempts were made to find fresh investment or a buyer for the business.

Image caption, In March work had to stop at Swansea's Kingsway when Dawnus collapsed - the project has now restarted