Publicly-funded college collapsed owing £260,000
PUBLISHED: 13:50 17 June 2019 | UPDATED: 15:10 17 June 2019
The full extent of the debt a Norwich college left behind following its collapse has been revealed.
Construction Training Specialists (CTS) buckled last month owing more than £266,000 in debt, just eight months after being handed £487,000 in public cash.
The figures were revealed as CTS filed for liquidation with administrators RSM Restructuring Advisory.
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The college owed thousands to Norfolk businesses, including just over £1,000 to Wymondham-based Brittania Safety and Fire Training, and £5,600 to Norwich's MKM Building Supplies.
It is owned by Peterborough Regional College which it owed the largest amount - in excess of £105,000.
It also owed £54,570 to Lloyds Bank and £2,500 to Broadland District Council.
Former students reported cash-strapped conditions at the College just before closing.
Daniel Kett, who had paid a £1,800 deposit for his level two plumbing course said he ended up purchasing his own tools because the equipment at the college was so bad.
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"It was all a bit tired and old," he said.
"We had to share batteries for the drills and I just decided it'd be easier to get my own," the 48-year-old added.
Mr Kett said he was never told by CTS that it was closing, and learned of the shut down via this newspaper.
"We won't get a penny back, I'm sure," he said. "It's just devastating."
Mr Kett also claimed new students were starting courses, shortly before the college closed.
Mr Kett is now hoping to finish his qualification with City College Norwich.
"It's just a shame that we have to pay twice for the same thing," he said.
Some debts such as that owed to staff and trade creditors could be repaid out of the pool of the firm's assets.
In its report, CTS has said that its "preferential" creditors (the ones which have the right to payment) are trade creditors and staff.
CTS's assets, which will include its property in Norwich's Hellesdon Park Road, totals approximately £85,500.