THE administrators appointed to run Simclar Group sold the remnants of the former Scottish electronics star's UK manufacturing operations for just £134,000, leaving creditors facing hefty losses.
Details of the sale are revealed in filings by experts from Deloitte, who took charge of Dunfermline-based Simclar after its founder Sam Russell put the business into administration in June last year.
This was followed by the loss of 138 jobs at Simclar's Fife site, where it produced components for firms in industries like transport.
The filings provide further evidence of the reversal in the fortunes of a company that once had more than 1000 Scots staff.
The Herald revealed yesterday that a case launched by liquidators to the Simclar Ayrshire business against Mr Russell, two other former directors and Simclar Group, will come to court next month.
The liquidators have challenged the lawfulness of a £3 million dividend declared by the Ayrshire firm, payable to Simclar Group, in 2006.
Months later Simclar Ayrshire closed its plants in Kilwinning and Irvine.
In a report to creditors in August last year, the administrators to Simclar Group said they had received more than 30 expressions of interest in the business.
They were in discussions with four parties regarding part of Simclar International, the manufacturing subsidiary. This produced components for Alexander Dennis, the Scottish bus builder.
But in a further report, they disclosed the sale of the Alexander Dennis element of the businesses realised only £133,500. The business was sold to a Lancashire-based company called Greenfold Systems.
In a statement, joint administrator John Reid said all of the company's remaining production staff transferred to Greenfold Systems. A total of 67 employees transferred.
Simclar Group's subsidiaries in the United States and China were not affected by the administration.
Mr Reid added Simclar International's remaining assets are principally seven industrial properties in Dunfermline, which the Joint Administrators continue to market. The proceeds from these will go to Bank of Scotland. A secured creditor, the bank was owed £28m when Simclar collapsed.
The administrators said 106 former employees of Simclar International may have preferential status depending on the outcome of tribunal hearings.
They do not expect to be able to distribute more than £19,000 to unsecured creditors. Non- group creditors were owed around £10m. The 2009 accounts stated: "The company and certain of its directors are the subject of a claim by the liquidators of Simclar (Ayrshire). This claim is being defended vigorously."
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