Deloitte appointed administrators to Harkand Group of companiesNews // May 6, 2016
Ian Wormleighton, Philip Bowers and Michael Magnay of Deloitte were appointed on 4 May 2016 as Joint Administrators of Harkand Group Holdings Ltd and a number of its subsidiaries.
Operating from a head office in Hammersmith, with offices in Aberdeen and Houston, Texas, the group employs approximately 400 staff with an estimated group turnover of £357 million. The appointment relates to 10 companies.
The full list of ten companies over which administrators have been appointed is:
· Harkand Global Holdings Limited;
· Harkand EMEA Limited;
· Harkand (AME) Limited;
· Harkand Gulf Limited;
· Harkand Gulf Contracting Limited;
· ISS Acquisition Limited;
· ISS Group Holdings One Limited;
· ISS Holdings Limited;
· Integrated Subsea Services Limited; and
· ISS (HR Services) Limited.
Unfortunately the group's European business (based in Hammersmith and Aberdeen) could not be saved, having ceased to trade prior to entering administration due to financial pressures. It will now be wound down by the Joint Administrators with the loss of 171 jobs. 39 staff will be retained for a short period to assist with the wind-down of the European business.
It is still hoped a sale can be concluded for the group's US (Houston based) and Africa business, thereby protecting a long-term valuable contract and preserving approximately 140 jobs.
A number of other entities within the group, including Aberdeen-based Andrews Survey, which employees 46 staff, are not subject to insolvency proceedings, and continue to trade. Negotiations are ongoing with a number of parties to secure a sale of the Andrews Survey business.
Mr Wormleighton, joint administrator and financial advisory partner at Deloitte, said: “The business has faced losses as a result of the prolonged depression in global oil prices. Despite the droup’s directors seeking to find a solution with its financial stakeholders, a restructuring could not be achieved. The directors’ decision to appoint administrators came after they could not facilitate a sale of the business in its current state or obtain additional capital to continue to trade. Whilst it is disappointing that the majority of the European business is to be wound down, we are still hopeful to be able to save a significant number of jobs in the group's US and Africa business, and we're confident of securing a buyer for the Aberdeen-based Andrews Survey business."