Receivers were appointed in June when the trustees of Herdmans Pension Scheme issued a winding-up petition against a subsidiary company due to its inability to meet pension contributions. The outstanding debt and pension payments prompted the Ulster Bank to call in its mortgages at Herdmans Limited and sister company Herdmans Holdings Ltd.
The Herdman family moved into property development in 2004, investing in various projects. The struggling company, once one of the region's biggest employers, owed more than £10 million when it collapsed.
The receivers report, filed with Companies House in Belfast, listed Ulster Bank as the creditor with the largest outstanding amount - a total of £6 million. Meanwhile, Invest NI, a secured creditor, is owed £2.5 million. The document also ties Titanic Quarter developer Pat Doherty in for £1.2 million.
The company owned the historic Herdmans Mill site based in Sion Mills,County Tyrone. They intended to redevelop the 60-acre site, valued by the receiver’s report at £6 million, which is the dominating landmark village of Sion Mills.
However, the collapse of the Irish property market led to the company experiencing cash flow difficulties. In the end, they could not meet pension payments owed to 100 or more former employees, and the Ulster Bank decided to call in its mortgages. The pension schemes were subsequently placed into a government protection fund.
This move placed the company into receivership and ended more than 170 years of ownership of the site by the Herdman family.
Meanwhile, Brian Murphy, from Belfast-based receivers BDO, said the process of finding new owners for the 60-acre Herdmans site was ongoing. He admitted that there was currently "no demand" for the site, but added that the firm would be seeking to get the best value they could for the historic property.
However, the collapse of the Irish property market led to the company experiencing cash flow difficulties. In the end, they could not meet pension payments owed to 100 or more former employees, and the Ulster Bank decided to call in its mortgages. The pension schemes were subsequently placed into a government protection fund.
This move placed the company into receivership and ended more than 170 years of ownership of the site by the Herdman family.
Meanwhile, Brian Murphy, from Belfast-based receivers BDO, said the process of finding new owners for the 60-acre Herdmans site was ongoing. He admitted that there was currently "no demand" for the site, but added that the firm would be seeking to get the best value they could for the historic property.
2 Comments
nigel
who do i contact about my shares with herdmans holdings plc
tracey
as a holder of shares from herdmansholdings plc were do i stand at this moment