R O’Donnell Plant & Civil Ltd
Moorfields were appointed as Joint Administrators over R O’Donnell Plant & Civil Ltd, a Hull-based specialist in civil engineering, groundworks, and drainage, on 14 March 2023.
Established in 2014, the company also supplied plant and labour for major infrastructure projects, including HS2. Unfortunately, delays to projects caused by pandemic lockdowns and broader industry challenges — including spiralling costs, labour shortages, and reduced government support — placed significant strain on cash flow, resulting in financial distress.
Objectives
- Support staff impacted by operational and financial difficulties.
- Assess the company’s financial and operational position to determine the best path for creditors and stakeholders.
- Protect asset value, including plant and machinery, during the administration process.
- Explore restructuring or sale options to maximise recoveries and preserve business continuity where possible.
Moorfields’ Actions
- Took immediate control as Joint Administrators, stabilising operations and engaging with staff to manage uncertainty.
- Conducted a detailed review of financial, operational, and project-related exposures, including legacy delays from HS2 and other civil engineering projects.
- Assessed options for creditors, balancing short-term cash management with long-term recovery prospects.
- Worked closely with key stakeholders, including clients, suppliers, and lenders, to maintain relationships and protect ongoing contracts.
- Monitored and managed plant, machinery, and other assets to preserve their value for potential sale or restructuring solutions.
Results
- Staff were supported throughout the administration, with clear communication regarding their roles and entitlements.
- Moorfields identified and implemented strategies to protect the company’s key assets and cash position.
- Creditors and stakeholders received a transparent assessment of options, enabling informed decisions on restructuring or disposal.
- The administration and the subsequent liquidation preserved value in the business and assets, laying the groundwork for an orderly wind-down and subsequent investigations.
“The HS2 project has suffered numerous delays since its inception. The knock-on effect to early-stage civil engineering companies can be significant, compounded by industry challenges such as spiralling costs, labour shortages, and the loss of government support schemes. R O’Donnell Plant & Civil invested heavily in plant and machinery prior to the pandemic, and delays to ongoing projects have been hugely detrimental to its cashflow.”
