Henry Group Holdings Faces £141 Million in Creditor Claims Amidst Liquidation

Administrators for Henry Group Holdings (HGH) have reported receiving claims totalling £141.15 million from unsecured creditors. The London-headquartered company, established in 2016 and solely owned by Mark Henry, entered liquidation on August 18, 2023. HGH is the parent company of Henry Construction Projects, which is also currently in administration.

Key Takeaways

Unsecured creditors have lodged claims amounting to £141.15 million against Henry Group Holdings.
The parent company, HGH, entered liquidation in August 2023.
Its subsidiary, Henry Construction Projects, is also under administration.
Administrators are working to assign some claims to the subsidiary’s administration process.
A separate £31 million High Court claim has been filed against former directors of Henry Construction.

Claims Against Henry Group Holdings

Joint liquidators Kevin Coates and Robert Starkins from Grant Thornton UK Advisory are managing the winding-up progress for HGH. Their report indicates efforts are underway to assign certain claims to the administrators of Henry Construction Projects Ltd. The primary remaining tasks involve monitoring the progress of these assigned claims, which includes seeking advice from their legal team. Future realisations are currently uncertain and will depend on the successful pursuit of these claims.

Legal Action Against Henry Construction

Meanwhile, the administration of Henry Construction is being handled by FRP Advisory. This firm has initiated a £31 million High Court claim against six family members and former directors of Henry Construction, including Mark Henry. The claim alleges unlawful payments were made from the firm for a family home and relatives’ tax bills, with administrators seeking repayment. A defence document filed with the court asserts that the parties deny all accusations of wrongdoing and argue that the payments were part of a legitimate intercompany arrangement.

The defence document further states that the defendants deny liability on all fronts. The administrators’ claim highlights a “pattern of conduct by Mark Henry” to transfer sums from his companies to “connected persons shortly before they entered insolvency”.

Financial Performance and Insolvency

Henry Construction Projects previously reported a turnover of £402.2 million and a pre-tax profit of £14 million in its financial accounts for the year ending June 30, 2021. However, the firm appointed administrators in June 2023, at which point it owed more than £40 million to suppliers. The next report to creditors from HGH’s liquidators is expected by December 25, 2026.