A North Yorkshire housebuilder has collapsed owing mammoth debts of over £300 million.

Ilke homes of Flaxby entered administration in June with the loss of more than 1,100 jobs, despite claims of a bulging order book for its modular homes.

A ‘statement of affairs’ from administrators Alix Partners reveals staggering debts of £68 million to Homes England and £227 million to equity investors.

Trade creditors are owed £17.1 million, with businesses in York and North Yorkshire among those losing out.

Among the biggest creditors are Edmundson Electrical of James Street, York, who are owed £131,129.

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Laverack Joinery of Huntington Road, York, is owed £24,780.

Portakabin of Huntington is owed £16,094.

And Modular Plantrooms of Eastfield, Scarborough, is owed £1.6 million.

North Yorkshire County Council is also listed as being owed £392,330.

The Statement of Affairs says most debt is made up of £227 million owed to “intercompany creditors", which is essentially owed in equity to Ilke’s investors.

The government housing quango Homes England is owed just under £68.2 million, which was a major backer of ilke, supporting it in funding rounds during 2019 and 2021.

York Press:

The statement implies the taxpayer may get as little as £200,000 back, despite securing the money against ilke-owned assets.

HMRC is also owed £2.19 million, staff are owed £724,000 and other creditors are owed £5.56 million.

The statement lists the book value of Ilke’s assets at the time of administration at £71.8 million, but it believes just over £1 million will be realised from selling such assets.

But as the administration is still continuing, areas listed with having no value may still generate a return.

Ilke’s book assets included £12.4 million of finished homes, which the administrator has yet to put a value on.

The Statement of Affairs said the total current net debt was £319 million.

It explained the £226 million owed to “intercompany creditors” was “inclusive of accumulated losses suffered by equity investors which are not representative of the external debt obligations of the group.”

Ilke Homes, which was founded in 2018, received several major capital injections in recent years as it ramped up production and went on a recruitment spree, taking on over 500 workers just last year.

But investors pulled the plug in June, reportedly over concerns at the rate of cash burn. This led to a scramble to find a buyer, which sadly never materialised.

York Press:

Ilke’s collapse comes after the closure of modular firm L&G Modular in May, with the loss of hundreds of jobs in Sherburn-in-Elmet, North Yorkshire.

Earlier this week law firm Aticus Law said that 600 former Ilke employees had joined in legal action against Ilke Homes over how the redundancy process was managed.

Claimants have until Monday September 4 to submit their claim for a Protective Award claim against ilke, which means they can receive up to eight weeks’ worth of pay in compensation, with a cap of £643 per week.