Richmond Square creditors told to "expect the worst"

Thursday, 22 September 2016 06:11

Advocate comments on prioritisation of creditors

"Expect the worst" - that's the advice to 197 construction sector creditors as two companies face liquidation.

It's confirmed the winding-up of Richmond Square Design Ltd and Richmond Square Construction Ltd would be undertaken by KPMG.

Manx advocate Kevin O'Riorden from Kelly, Luft Stanley and Ashton is advising one of those companies.

He says there's not much hope creditors - many of them Island-based - will be able to recover outstanding bills - totalling more than £1.6 million.

Insolvency laws dictate government payments like VAT should be prioritised, meaning creditors will be put to the back of the line-up.

Mr O'Riorden says that's tough luck, but there's not much anyone can do about it:

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