BusinessBusiness RecoveryClient row leads to SLP collapse

Client row leads to SLP collapse

Contractual dispute and claims from a customer on one of its previous major construction projects sparks collapse.

Engineering and construction company SLP Holdings Ltd has gone into
administration after a dispute with one of its cleints, putting 876 jobs in
jeopardy.

Stephen Oldfield, Chris Pillar and Mark Shires of PricewaterhouseCoopers were
appointed joint administrators of SLP and its subsidiaries today.

The company which services the oil and gas industry has been embroiled in a
significant contractual dispute and claims from a customer on one of its
previous major construction projects.

“This dispute put significant financial strain on the business. Arbitration
proceedings were commenced and negotiations were pursued. However, despite
attempts to settle between the parties, the dispute remains unresolved. In the
absence of any clear prospect of resolution the SLP Board concluded they were
left with no option than to invite the appointment of administrators,” PwC said
in a statement.

Stephen Oldfield said: “The directors have been exploring a number of options
for the business over several weeks but were unable to find a solution.
Consequently they had no alternative but to invite my appointment.

“However extensive discussions with one of SLP’s current major customers have
concluded with agreement to fund continued work on that contract through to
completion in Spring 2010.

“This agreement provides a significant proportion of SLP’s workforce with
continuing paid work and subcontractors and suppliers to that contract have and
will similarly continue to be paid.”

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