Troubled Dundee contractor Jaydee Heating is set to be dissolved leaving unsecured creditors out of pocket to the tune of more than £750,000.
Administrators RSM Restructuring said the secured creditor, the Royal Bank of Scotland, is anticipated to receive a final dividend of 77p in the £ on its claim of £104,000 – a payment in the region of £80,000.
The preferential creditors – employees and tax authorities – have had their claim of £44,000 settled.
Unsecured creditors, including suppliers, submitted claims worth £751,944.
It has not been possible to pay them any money so far and RSM Restructuring said the future prospects of making any payment are nil.
Jaydee, in Wester Gourdie industrial estate, carried out industrial and commercial heating as well as electrical and plumbing work.
It went into administration in November 2015 with debts of almost £400,000 after prolonged trading difficulties.
Employing 20 people, it operated in a highly competitive market in the Dundee area.
Any work won was at the expense of profit margins that were being increasingly squeezed as competition for work intensified.
In 2014 it fell into the red with a pre-tax loss of £111,694 from a turnover of £2.868m.
Last year the turnover was down at under £900,000 as the firm reduced its activities, but it still made a loss before tax of £29,284.
Earlier this year the administrators raised the possibility of the firm receiving a compensation payment from the possible mis-selling by its bank of an interest rate hedging product.
They investigated whether the firm wrongly bought a product intended to be a protection against interest rate rises.
The products were financially speculative and complex, and were often a condition for a bank agreeing to provide a loan facility.
Banks incentivised the sale of the products and exit fees were often not fully disclosed.
In their latest report the administrators said an agreement was recently reached between the Financial Conduct Authority and certain major banks including the Royal Bank of Scotland in relation to the sale of interest rate hedging products.
Having looked further into the matter, the administrators said they were not aware of Jaydee being sold one of the products.
To wind up the company’s affairs, the administrators have lodged a formal notice of a move from administration to dissolution.
