However, RBS, which provided an invoice discounting facility to Albany, looks likely to recover its debts, according to one of the joint administrators appointed to the neutral vendor and workforce management company.

Albany’s four UK companies entered the administration process last week, with the loss of 81 jobs (see box). They were Albany Management, Albany Holdings, Albany EMEA, and Albany Employment Services.

John Alexander, a partner at chartered accountants Carter Backer Winter (CBW), told Recruiter: “I am hopeful that recruiters and contractors will get the money owed to them, but I can’t say how much or if at all. It’s However, Alexander added: “RBS should be paid out in full by UK debtors where they do have a charge [over the debt].”

Alexander said the extent to which recruiters and contractors received the money due to them depended on how successful the joint administrators were in “getting value”, ie selling off parts of the group.

“I am hopeful that recruiters and contractors will get the money owed to them, but I can’t say how much or if at all.

Funds could be raised by the disposal of Albany’s foreign companies, which operated largely independently - possibly through management buyouts or through trade sales, said Alexander.

In addition, Albany’s UK contracts could be sold on. “It’s a ready-made operation for someone, probably a bolt-on for something they have already.”

Albany could not trade its way out of its difficulties, he said, adding: “The UK companies have effectively ceased trading.”

According to Albany, the collapse of its UK arm came about as a result of RBS pulling a £3m invoice discounting facility, and seeking to recover cash advanced to Albany from money coming into the company from agencies and contractors.

As a consequence, contractors, many of whom are umbrella employees of Albany, have not received wages due to them.
Some contractors have expressed concern over the security of funds deposited with Mirasol Holdings, with suggestions made that RBS and Albany are in dispute over ownership.

Mirasol Holdings is a company, registered in the Turks & Caicos Islands and used by many of Albany’s contractors (particularily its foreign contractors) to deposit their earnings.

Contractors are paid from the fund in profits, often reducing the tax they pay.

Recruiter tried to contact Mirasol, but as the magazine went to press there had been no response.

One contractor who is part of an action group looking into the possibility of class action to recover the money owed, much of it entrusted to Mirasol, told Recruiter that the average amount owed to each of the group’s members was £100,000.

“We don’t expect to get our money, but we do want to know what is going on,” he said.

Alexander said he was aware of the existence of Mirasol, however, he added: “I am not aware that RBS have any [financial] charge on that company.

“It’s a separate operation,” he said, adding that at this stage his focus was on Albany.

Recruiters who paid wages to their temporary workers but have not been reinbursed by Albany for invoices sent in repect of this work have also expressed their concerns as the flow of money from the end-user client down the supply chain to recruiters effectively ceased.

The owner of one recruitment agency, who wished to remain anonymous, told Recruiter that after paying its temporary workers in September and October, Albany owed his company between £250,000 and £350,000.

The owner’s business partner warned: “If this money isn’t paid it could put one of our companies into administration.”

Recruiter also understands that RBS has instructed Hammonds solicitors to collect money that would normally have gone to Albany direct from agencies.

In a statement, RBS told Recruiter that it was unable to comment on matters relating to Albany because it had not been given its customer’s, ie Albany’s, authority to do so.