Collapsed Dundee construction services firm McGill and Co could soon have a new owner after a preferred bidder was identified by administrators.
McGill went into administration on February 1. Nearly 400 workers were told they were losing their jobs at an ill-tempered meeting in Dundee’s Apex Hotel.
It later emerged McGill was on the verge of being sued by HMRC over an unpaid tax bill although the company claimed to have been owed £6 million by another construction firm.
The firm went into administration after Scottish Enterprise rejected a plea for a crisis loan as they said there was not enough time to carry out due diligence on the firm’s turnaround plan.
Now administrators KPMG has revealed that a company owned by Broughty Ferry businessman Graeme Carling has been granted preferred bidder status
Blair Nimmo, global head of restructuring and joint administrator at KPMG, said: “The joint administrators are pleased to announce they have appointed Catalus Energy Investments Limited as the preferred bidder and granted them a short period of exclusivity to acquire the business and certain assets of McGill & Co Limited – in administration.
“Agreement of the sale is subject to due diligence and contractual agreement, however, both parties are hopeful that a transaction can be concluded in early course. Further information will be available in due course.”
McGill & Co was established in 1981 as a specialist building contractor.
The company provides services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh.
The company trades through five divisions; mechanical & electrical services, facilities management; social housing; private residential; fibre and wireless.
Catalus Energy Investments Ltd is owned by Graeme Carling, whose Carling Property Group is Scotland’s largest private landlord.
He said: “I am excited to be announced by KPMG as the preferred bidder and over the next few days our team will complete our due diligence at which point we should be in a position to quickly complete the purchase of McGill & Co.
“We have big plans for McGill & Co and can’t wait to get started.”
A spokesman for KPMG said it is impossible to say when a deal may be concluded.
Dundee City Council leader John Alexander said: “This is great news for staff that have had to deal with the turmoil of the recent announcement and we, of course, need more detail about the exact nature and scale of the buy-out but this is certainly good news
““After some disappointing news over the last six months, this is certainly something which will be welcomed across the whole city.
“I hope to be able to discuss the plans with the buyer in due course.”
Dundee East SNP MSP Shona Robison added: ““It’s early days but this news will be cautiously welcomed.
“Hopefully once the Administrators have carried out their final due diligence and are satisfied with the preferred bidder, contracted works can recommence with many former McGill workers being re-employed.
“I would also hope that those companies which were in the supply chain for McGill will also benefit from this deal going forward.”