The administrators of failed contractor Longcross Construction have warned creditors that they may get less than 1 per cent of the money owed to them.
In a progress report published yesterday, administrators from Deloitte said they would ask for a 12-month extension of the administration period to recoup debts.
The report revealed the contractor owed Lloyds Bank £6.2m when it went under in June, of which £2.5m has now been repaid.
However, the administrators expect as little as £130,000 may be available to unsecured creditors. That would equate to just 0.4p in the pound for creditors, while the maximum payout is likely to be no more than 1.2p.
A previous report from Deloitte last August showed that Longcross Construction owed £30m in total when it went into administration.
The latest report, filed with Companies House yesterday, also found that the company made payments of £564,000 and £226,000 respectively to Longcross Group subsidiaries Longcross Fire and Security and LX Engineering (South).
However, as these payments were made after a winding-up petition for the company was issued, the majority of the funds have been recovered.
As revealed by Construction News earlier this month, Longcross Engineering (South) went into administration after experiencing cashflow problems and having its funds frozen by its lenders.
Lloyds Bank’s decision was taken as the company shared a credit facility with Longcross Group and Longcross Construction.
Longcross Group went into administration a week after its construction arm last summer.