Oil service firm International Tubular Services (ITS) Holdings collapsed under debts of more than £145million, it emerged yesterday.
The Aberdeen company’s trading business was sold earlier this year, securing all 1,200 jobs, but the parent group was left to go into administration.
Documents just published by Companies House reveal that although ITS Holdings collapsed in April, professional service firm PwC, which was ultimately taken on as administrator, had been instructed to look for a buyer for the business three months earlier.
US group Parker Drilling bought the ITS operating company in a pre-pack deal for £82million, leaving behind ITS Holdings and its debts.
Creditors of ITS Holdings include lenders owed more than £125million, while shareholders including ITS founder Bob Kidd and private-equity firm Lime Rock Partners were due more than £19million.
The collapse followed months of tough trading for the group after it withdrew from underperforming regions, hitting earnings.
PwC’s administration report said that shareholders could not agree over the company’s future direction and investment requirements, creating liquidity problems for the business.
Mr Kidd quit the board and resigned as chairman and chief executive in January, citing disagreements with his fellow shareholders as the reason for his departure.
PwC said that the sale of the trading business to Parker reduced the number of unsecured creditors, who could expect a dividend.
It did not say what level of return they would receive.
ITS was established by Mr Kidd, a former Grampian Industrialist of the Year, in 1986.
The continuing business – primarily renting out drilling gear such as tubulars and pressure-control equipment – employs around 70 people in Aberdeen, with the remainder of its workforce operating out of 28 facilities in 18 countries.
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