The unexpected cash recovery will enable payouts to former ISG employees, though trade contractors and suppliers remain set to miss out on the funds they are owed.
According to the latest progress report from EY, recoveries from ISG’s trade debtors and client-held retentions have surged to £26.3m — more than double the £11.4m originally projected in the directors’ Statement of Affairs.
In addition, EY secured a £5.3m legal settlement with a client, supported by litigation funder Bench Walk and insurer Ignite, taking total recoveries well above initial expectations.
Administrators said the stronger-than-anticipated cash haul will allow dividends to be paid to employees owed wages and holiday pay once Employment Tribunal protective award judgments are finalised — a process expected to take around six months.
Three of the four ISG companies with staff creditors — ISG Construction, ISG Central Services, and ISG Retail — are now expected to pay employees in full. However, staff at ISG Interior Services Group will receive just 7.2p in the pound.
Meanwhile, the outlook remains bleak for other creditors. HMRC has filed £91m in “secondary preferential” claims for unpaid VAT, PAYE, and National Insurance but is unlikely to recover the full amount.
Unsecured suppliers and subcontractors are owed roughly £885m, with EY confirming there will be no distribution for this group.
English 