Stewart Milne's bank owed nearly £100m year after collapse

The main lender of a former Aberdeen-based house builder is still owed nearly £100m, more than a year after its collapse.

The Stewart Milne Group was placed into administration in January last year with the loss of 217 jobs.

At the time, Stewart Milne himself said he was “devasted” and “struggling to accept” the collapse of the firm.

Now, the administrator, Teneo has revealed that the Bank of Scotland, the main lender to the business, has been repaid £9.2m.

However, the bank was due a total of £107.9m when the business entered administration and its unlikely it will get all the money back.

In January last year, the housebuilder said: “Stewart Milne Group was up for sale and, following significant interest, two bids were submitted.

“The bank has not accepted either bid and withdrawn its funding which left the directors with no option but to appoint administrators.

“I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it.”

The firm had been in significant debt for more than a decade.

In response to the administration, Lloyds Banking Group, which owns Bank of Scotland said: “When a company experiences financial difficulties, we will always try to find a solution that places the business onto a sounder financial footing without the need for any insolvency process.

“Unfortunately, despite several years of support and forbearance, including multiple maturity extensions to the borrowing, this has not been possible in this instance.”

It’s understood one of the bids for the firm was Stewart Milne himself.

The latest update from the administrator also shows that £36.4m is due to other people and businesses, with little prospect they will get that money back.

HM Revenue and Customs has made claims of around £1.4m through debts because of deducted taxes such as VAT and National Insurance Contributions.

All employees have now been made redundant at the business, and claims from former employees have reached £268,000.

Some staff told STV News they were “disgusted” with how they were treated after the firm was placed into administration.

In the last update in August 2024, Teneo said that five sites that were only partially completed had been sold.

Now, the three final sites have been sold, including at Cove and Stonehaven.

Some buyers told STV News at the time that they “felt like a number” with many saying they faced the prospect of losing thousands of pounds.

The administrators say they have extended the period of administration for the firm to on or before January 8, 2026.

Although, they have warned, “due to the complex nature of the remaining assets, a further extension may be required by an application to the court, in order to complete the sale of unrealised assets”.