Former ISG Staff to Receive Payouts
Former ISG staff will receive payouts due to a surprise cash recovery, while trade creditors will not see any of the £885m owed to them.
The latest EY progress report shows that recoveries from ISG's trade debtors and client-held retentions have increased to £26.3m, compared to the initial estimate of £11.4m.
A £5.3m legal settlement was also reached with a client, bringing the total receipts ahead of early forecasts.
The administrators expect to pay dividends to employees owed wages and holiday pay once Employment Tribunal protective award judgments are finalized, a process expected to take six months.
Three of the four ISG companies with staff creditors, including ISG Construction, ISG Central Services, and ISG Retail, are expected to pay staff in full.
No payouts will be made to trade contractors and suppliers.
Author's summary: Former ISG staff to get payouts after surprise cash recovery.