BHS creditors set for £36m payout against £1bn of debts
BHS’ unsecured creditors are set for a £36m interim payout against debts over £1bn, according to reports.
FRP Advisory, the liquidator of the former high street stalwart, disclosed a 3.62p dividend in a document sent to creditors last week.
BHS collapsed into administration in April 2016, with as many as 11,000 people losing their jobs.
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FRP is winding up the retailer and returning the proceeds of residual assets to creditors.
Most of the interim dividend in the FRP report, seen and reported by Sky News today, has been funded by a settlement reached last summer in which Sir Philip Green’s Arcadia Group agreed to release a £35m claim against the company.
Green sold BHS for £1 around a year before it failed. He has agreed to pay £363m into BHS’ pension scheme following months of public outcry and criticism from MPs.
The interim payout follows previous estimates by BHS’s administrators up to 8p in the pound would be returned to unsecured creditors totalling £998m. However, this estimate was prior to the Arcadia settlement, raising hopes total payouts could ultimately be more.
FRP declined to comment.
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