ISG administrators recover £46m but unsecured creditors face total loss

What happened

Administrators for ISG have now recovered £46m since the contractor group entered administration in September 2024, according to the latest EY-Parthenon report. Over the six months ending 19 September 2026, recoveries totalled almost £7m. This included a £5m instalment, which completed a £10m settlement related to a claim from ISG’s engineering division. Another £1.6m was secured on 22 September after ISG Retail won an adjudication; this sum arrived after the main reporting period and raises the recovery total further.

EY-Parthenon said that despite these efforts, there will not be sufficient funds to distribute to non-preferential unsecured creditors. Claims from this group are estimated at £885m. HMRC is expected to recover part of its £91m preferential claim, but will also face a shortfall. The administrators continue to seek further recoveries using legal action and professional support.

The background

Eight companies within the ISG group went into administration on 20 September 2024. Since then, EY-Parthenon has overseen asset recoveries from outstanding debts, retentions, and settlements. The administration has also involved pursuing claims through adjudication and the courts, with the services of law firm Pinsent Masons, external experts, and support from some former ISG staff.

During this process, administration time costs and expenses have built up. EY’s team has logged 16,262.7 hours on the process, generating £11.03m in time costs. Total expenses across the eight companies now stand at £14.57m. These expenses include legal and professional fees, litigation funding, and other administration spending.

The process has focused on realising as much value as possible from remaining company assets and outstanding claims. While some recoveries have been successful, the overall asset pool has not been sufficient to cover liabilities. Preferential creditors such as HMRC receive priority, leaving little prospect for non-preferential unsecured creditors.

What people are saying

EY-Parthenon has not provided direct quotes in the current update, but the report states that further recoveries are being pursued with help from Pinsent Masons, independent experts, and former ISG employees. The administrators have confirmed they do not expect enough funds to make distributions to non-preferential unsecured creditors.

The Construction Enquirer states that HMRC is expected to recover only part of its preferential claim of £91m and will face a shortfall even as a priority creditor. Meanwhile, administration costs continue to rise as the process continues with legal actions and settlement negotiations.

What happens next

EY-Parthenon will continue to pursue outstanding legal claims with the intention of maximising any further recoveries. These efforts involve both internal resources and external advisers. The prospect of distributing funds to non-preferential unsecured creditors remains unlikely, given the current state of recoveries relative to estimated claims. Administration costs and expenses are expected to increase as the process concludes outstanding cases.

According to the most recent information, there have been no payments to unsecured creditors so far and no such payments are anticipated. The administration process remains ongoing, focusing on further asset realisation and resolution of legal matters. The primary beneficiaries of any further recoveries will be preferential creditors, with HMRC in particular due to receive at least a partial payout.