Administrators in a UK construction insolvency case are attempting to access project bank account (PBA) funds to recover money for their fees, prompting debate over the protection of ring-fenced payments intended for subcontractors. 

This case highlights wider tensions in the construction sector between insolvency priorities and payment mechanisms designed to safeguard supply chain firms. PBAs are intended to ensure transparent and direct payment flows, but administrators are now assessing whether remaining balances can be redirected to cover legal and administrative costs. 

The situation raises concerns about whether current protections are strong enough in a financially stressed construction industry, particularly over how protected funds are handled when companies go into administration and whether subcontractors remain fully safeguarded under project bank account arrangements.

Read more on this situation here

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A UK-based EV charging and battery firm, ZPN Energy, has collapsed into administration despite considering itself a ‘global leader’ in constrained grid EV infrastructure. The company focused on providing charging solutions where electricity supply is limited, targeting a growing market as EV adoption rises. 

However, financial pressures and an inability to secure sufficient funding ultimately led to failure. Administrators have been appointed, and the collapse puts jobs at risk while raising concerns about the fragility of smaller players in the UK’s EV supply chain. 

This situation highlights broader challenges facing the sector, including high capital requirements, infrastructure costs, and reliance on investor confidence. While demand for EV technology remains strong, the company’s downfall underscores how difficult it is for startups to scale and compete, even in fast-growing green industries. 

Read more at The Business Investor

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Spanish startup Zeleros was declared insolvent by a Valencia court in late March, following the bankruptcy of Dutch developer Hardt Hyperloop on 4 March. Together, they represented two of the sector's most prominent European players.

Hardt had made real technical progress, demonstrating levitation and switching systems at speed, but it still wasn't enough. Zeleros never made it out of the research phase, despite EU funding and institutional support.

The story is the same for both: turning a prototype into actual infrastructure takes massive investment and regulation that is not yet in place. No hyperloop has ever carried a single paying passenger anywhere in the world. Add in Virgin Hyperloop's collapse in 2023, and a clear pattern emerges - that the technology works in theory, but the path to commercial reality remains out of reach, being prohibitively expensive.

Read more at The Rail Agenda

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EU-funded innovation body, EIT Manufacturing, headquartered in Paris-Saclay, filed for liquidation on March 25, 2026, following a massive fraud investigation. The collapse stems from ‘serious irregularities’ in project selection and financial reporting identified by the European Anti-Fraud Office (OLAF) between 2020 and 2022.

The fallout from this is expected to be significant - with over 200 beneficiaries, including startups and universities, being left with €15 million in unpaid claims. Many startups are facing bankruptcy after spending their own capital on the promise of EU grants that were frozen by the EIT (European Institute of Innovation and Technology) as far back as June 2024. While EIT leadership is exploring a ‘reformed’ legal entity to continue operations, the crisis has triggered a broader debate over the stability and accountability of the KIC (Knowledge and Innovation Community) model within the EU’s innovation system.

More at Science Business here

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The collapse of Market Financial Solutions (MFS) in early 2026 has sent shockwaves through the private credit market. The UK-based bridging lender entered administration following allegations of a massive £1.3 billion fraud, involving 'double pledging' - where the same property is used as collateral for multiple loans.

A worldwide freezing order has been issued against founder and chief executive Paresh Raja, who reportedly left for Dubai as investigators uncovered a massive shortfall. While MFS owed £1.3 billion to creditors, the underlying assets were valued at just £230 million. Major banks, including Barclays and Santander, face significant exposure. The scandal has been dubbed a 'cockroach even', exposing systemic risks in the private credit sector where rapid growth appears to have outpaced regulatory oversight and internal governance.

Read more on this developing story at the Guardian here

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