Wednesday, 23 July 2014

KPMG defends earnings from Connaught collapse

An accountancy firm has defended itself after it was reported to have earned £6.4 million from the collapse of failed contractor Connaught.

KPMG was appointed administrator by the group in September 2010 after a series of warnings were issued by the company about its financial position in the previous months.

The group was unable to service its estimated £220 million of debt and the collapse left landlords struggling to maintain services, and sub-contractors facing bankruptcy.

KPMG’s earnings from the collapse were reported in the Daily Telegraph, which said the accountancy firm was applying for a further 12 month extension to the administration to conclude a number of issues.

A spokesperson for KPMG said: ‘Connaught is a large and complex insolvency. Finding 50,000 invoices in boxes at head office was the tip of the iceberg. To have negotiated two sales and rescued most of the jobs is a significant achievement in the circumstances. 

‘Our fees are paid by the secured creditors and indeed we negotiated a concession with them.’

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