The mountain of trade debt at main trading firms Daniel Contractors and Land and Marine Process Engineering is revealed in an initial report from administrators Deloitte.

Adminsitrators have warned there will be little left in the pot for trade contractors and suppliers after £9.3m has been paid off to HMRC for VAT. In total both firms went down owing around £40m.

Deloitte also revealed that rival contractor Murphy had been in talks with Daniel Contractors to buy Land and Marine prior to the administration and had initially offered £750,000 for the business.

In the event Murphy snapped up the assets and work for an undisclosed sum during the administration.

The £65m turnover Daniel Contractors group started to run into cashflow problems last year. These were caused by payment and project delays which also tied up significant cash held in retentions.

Its predicament worsened from significant investment on a bespoke IT solution for an IT contract and Severn Trent terminating its contract.

A contractual disputes on a Barhale/Scottish Water job also tied up working capital leading the firm to seek buyers for the business.

But when no suitable offers emerged the group was placed into administration in May.

A creditors meeting will be held at 2pm on 23 July at the Grove Hotel in Warrington.