William Verry fighting for survival

The industry was awash with rumours about William Verry this week as the 177-year-old contractor battled to keep creditors at bay.

Directors at Verry Construction have been locked in a series of board meetings as rivals continued to speculate about the future of the firm.

Verry had faced a winding-up petition due to be heard next month but is believed to have settled the outstanding debt.

But Contract Journal can reveal that five new County Court judgements have been registered against the firm in April chasing debts worth £84,000.

Industry sources said Verry is considering a number of options including extending its banking facility and a Company Voluntary Arrangement (CVA) with creditors.

A court order would offer the firm protection against any action taken by trade contractors and suppliers it owes cash to while it tries to broker a CVA with creditors.

The arrangement means Verry agrees to pay some of its debts over a set time period.

At least 75% of creditors have to agree to the deal before it becomes binding.

Latest figures show Verry made a £250,000 profit for the 18 months to June 2008 on a turnover of £118m.

One industry source said: "Rumours have been going around for quite a while and the situation is so far advanced that a number of rival firms have been sniffing around Verry's sites just in case something happens."

Others claimed that Verry could even be bought out by rivals as a going concern.

Verry refused to comment officially despite repeated calls. One company source said: "I've heard we are talking to the banks about extending our credit facilities."

A credit insurance broker added: "Credit insurers had been unhappy with Verry for the past two years.

"No-one is giving Verry credit at the moment, so the company will have to pay up front for everything they do."