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100 redundant at insolvent engineering group 8 January 2014

Nearly 100 staff have been made redundant after an Oldham-based civil engineering group entered administration.

The three trading businesses of DCT Group – DCT Holdings Limited, DCT Civil Engineering Limited, and DCT Plant Limited – entered administration following a long-standing legal dispute between the group and Liverpool County Council.

Despite judgement in the Group’s favour, the resulting substantial legal and associated costs have forced the company into insolvency.

Tom Jack and Sam Woordward, partners at EY, were appointed as joint administrators on 6 January.

Jack said: “DCT Group was a long established engineering business that has been impacted by the outcome of a legal dispute.

Despite this being settled in the group’s favour, the group is now required to pay substantial legal costs which have been incurred by the other party over a number of years.

As a result the group has insufficient cash flow to fund continued trading and the directors of the group have concluded that the group is insolvent.

We are therefore working with the directors and retained employees to try to preserve and sell contracts and maximise asset values for the group’s creditors.”

DCT Group, which posts annual turnover of £37m, employed a total of approximately 100 staff before entering administration, with all but 13 employees having been made redundant following the appointment of administrators.

“A statement from Liverpool County Court said: “As a public authority, we take very seriously the requirements of confidentiality imposed on arbitration proceedings.

“We see that DCT have made a public statement in relation to proceedings that are not yet concluded. We are unable to comment on the detail of these proceedings but note that DCT recognises that the outcome of its claim is such that it will inevitably have to bear the costs incurred by Liverpool City Council in defending that claim.

“It would appear from their statements that they will not even seek to suggest otherwise. It follows from this that we certainly do not accept any suggestion that DCT were successful in the arbitration.”

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