Bosses rescued the civil engineering firm in January 2013 after administrators BDO were called in by the banks.
The Hewlett team has now cleared its £1.5m debt to creditors while retaining the majority of its staff.
Alan Cooper, Managing Director of Hewlett Construction Ltd said: “It has been a tough journey to collect old debts on behalf of old company creditors, but we are pleased with the final result.
“It is really positive news for us and for creditors of the old business. We are also currently pursuing further debts, which mean our creditors are due to get more than was originally predicted.
“This repayment marks the end of a very long campaign that started within days of the administration and management buyout.
“The management buyout allowed us to secure a future for the business, significantly enhancing the prospects for creditors.”