Former Chesterton staff can expect grim reading in the post about the redundancy payments they are due.
Chesterton administrator Grant Thornton will hold a meeting with outstanding creditors in a month’s time to discuss monies left following the clearance of book debts to Royal Bank of Scotland, the failed agent’s fixed charge creditor.
A report will be sent out 10 days prior to the meeting outlining the position.
A source said: “The administrator’s best estimate currently is that there will be no distribution of funds to unsecured creditors.”
There is also unlikely to be anything left for staff redundancy payments, leaving them entitled only to the government’s £280 per week minimum, with payment in lieu of notice of one week for every completed year up to a maximum of 12 years.
They can also claim for payment arrears up to when the group went into administration at the limit set.
Three hundred staff were made redundant from the group’s commercial offices on 8 March after last being paid at the end of February.
Many are also still owed large sums in incentive payments.
References: EGi News 16/05/05
