A dispute over a £6 million bill was “a major factor” in the demise of construction services firm McGill, resulting in the immediate loss of 379 jobs.
Documents released by Scottish Enterprise (SE) through freedom of information show the dispute was one of the major talking points on the firm’s financial situation.
While the documents – primarily made up of email exchanges – have been heavily redacted, a senior source within McGill has confirmed the bill was for a major contract with engineering and construction company Sir Robert McAlpine to build student accommodation close in St Andrews.
McGill fell into administration earlier this month after SE rejected a £2m loan request and Santander removed the firm’s overdraft facility.
The source, who asked not to be named, said the McAlpine disagreement was the main reason that McGill bosses went to SE for a loan – foreseeing that it would create a cash flow problem in the early months of the year.