APC's creditors join the queue

As the receiver's investigations into failed company APC deepen, Contract Journal has learnt more of the trail of debt it has left behind. An unofficial list of creditors shows that more than 100 firms have now been hit, and more are expected to be added to the list.

Murdo Mackenzie, company secretary for Mackenzie Plant Construction, confirmed that his business stands to lose £30,000. Up until September the company like others had received regular payments from APC.

"We received two cheques from APC - one in September and one in October," said Mackenzie. "The September cheque cleared and the October one bounced."

As a result the company stands to lose payment for work carried out by a bulldozer on the 'M74' (the A74/M6 improvement) in June, July, August and September.

So far, the creditors' list shows debts totalling £4 million, which include one loss for a plant manufacturer of £400,000 and another for a plant hirer of £200,000. According to receiver KPMG, APC had total debts amounting to £30 million.

Liz Clow, ex-managing director of APC, is currently being sued by the receiver, but no details are being released over the amount and on what grounds the action is being taken.

When asked by CJ what went wrong at APC she said: "The M74." And added that although APC had already received £12 million for the project, money was still owed: "The M74 contractor Autolink owed the company £4.8 million."

Autolink's Laurie Smith said the firm could not make a statement about the amount as this was being discussed witht the receiver. However, another Autolink source said the £4.8 million was "far too high a figure."

Clow claims discussions broke down between Autolink, APC and the bank regarding payment, the day before the receiver stepped in September. She told CJ: "There were still three months of negotiations to do and the banks were not prepared to go through the winter."

Although confirming that APC's companies and associated companies are under investigation she denied all allegations regarding the use of APC funds to buy and repair properties.

Cranston Construction, which shares the same premises as APC, but is principally owned by Clow, also has a string of creditors.