Former employees of Elements Europe bring tribunal claims
Summary
Former employees of collapsed modular builder Elements Europe have brought tribunal claims over the circumstances of their dismissal, according to administrators’ latest progress report. The tribunal process is delaying distributions to ordinary preferential creditors, while administrators continue asset realisations and expect to move the company into creditors’ voluntary liquidation.
Why it matters
The case highlights how insolvency proceedings can affect payment timing for employees, subcontractors and other creditors involved in residential and mixed-use construction supply chains. Surveyors working on modular, offsite or development projects may also note the financial risks associated with contractor failure and loss-making schemes.
Key points
- Tribunal claims from former employees are delaying a dividend to ordinary preferential creditors.
- Administrators say former employees are likely to receive the full amount claimed, subject to final judgment.
- More than £300,000 has been raised through stock sales and related recoveries.
- Unsecured creditors, including subcontractors, are still expected to receive a dividend.
- Elements Europe’s collapse followed significant trading losses on residential and mixed-use projects.
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