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Construction firm goes into liquidation

Date Added: 12/03/2013  

Construction company Ocon was forced to go into liquidation as its parent firm was unable to provide the finance it needed to stay alive.

Manchester-based Ocon appointed administrators Mazars earlier in the month and it has released details regarding the failure of the company.

According to a report by the Manchester Evening News, recent accounts for the Opal Group - which owned Ocon - revealed it had been struggling to refinance £886 million of debt with a syndicate of 14 banks.

Tim Askham and Robert Adamson of Mazar released a statement that said Ocon had carried out an "urgent review of its financial position during February," adding: "This followed trading losses in the previous year, continuing losses on current contracts and difficulties in procuring new contracts."

Work has stopped at all of the construction sites being operated by Ocon at the present time and its 50 members of staff have been informed that their jobs are at risk. Redundancy consultations with all the employees have already begun.

"he administrators are now urgently engaging with clients and contractors to ensure an orderly handover of current works so that buildings can nevertheless be completed to schedule," added the statement from Mr Adamson and Mr Askham.

Ocon needed to secure extra funds from its parent company in order to be able to complete its contracts, but it was revealed by the administrators but these could not be obtained via Opal Group, which could not support the plan.

Earlier in the month, it was revealed that 300 jobs have been cut at Axminster Carpets as part of the firm's efforts to avoid being forced to go into liquidation.

Administrators Duff & Phelps announced the loss of the positions was a necessary step in order to give the company a chance to survive. Another 100 staff members have been told their jobs are at risk.

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Posted by Julie Cutts

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