Oxford GB Two Limited was set up to develop a £32m Hilton hotel close to Leeds Arena.
Work stopped on the site back in 2015 when main contractor GB Building and the GB Group failed.
A number of subcontractors on the job including concrete specialist SCC and local civil engineer McFadden were dragged down by unpaid bills for the project.
The Leeds City Region Local Enterprise Partnership granted £4.8m funding towards the project.
The LEP had been working with Oxford GB Two to finish the project.
But work on the site has been at a standstill for 12 months and now the company has been placed in administration.
Sarah Bell and Philip Duffy of Duff & Phelps were appointed Joint Administrators of Oxford GB Two Limited earlier this month.
Bell said, “We are in discussions to seek to agree a forward sale which would enable construction work to recommence this year.
“Until this is agreed and the project is completed it is unlikely that the final return to creditors of the company will be known; however stakeholders will be kept informed of progress.”