The collapsed fundraising agency Home Fundraising Limited will pay unsecured creditors only 1.3p per pound owed on total estimated claims of £3.8m, the latest administrator’s report for the company shows.
The door-to-door fundraising agency announced in March that it was entering administration and had previously been in a company voluntary arrangement, a deal that allows companies to pay creditors over a period of time while remaining trading.
The administrator’s report says that there are about 147 unsecured creditor claims against the firm, totalling £3.8m.
The amount owed to the company’s 1,111 former employees could amount to approximately £239,000, the report says.
The employees are classed as preferential creditors in the report and are expected to receive the money owed in full.
But as the total funds available for unsecured creditors is currently only £48,876, the administrators say in the report that Home’s unsecured creditors are likely to receive only a fraction of what they are due.
The administrators are waiting for further information about the former employees from the Redundancy Payments Service before finalising the amount owed to staff.
There are also employment tribunals under way, the report says, which could affect the amount owed to preferential creditors.