More than 80 unsecured creditors are ''unlikely'' to see any of the $203,000 they are owed by Dunedin company Food Equipment Specialists Ltd, which has been placed in voluntary liquidation.
The company is estimated to owe a total of $468,000 to staff, secured creditors and 82 unsecured creditors, but as yet the value of plant, stock, vehicles and accounts outstanding are to be established, which could offset the total owed.
The 50-50 directors and shareholders, Neil Leonard and Michael Bell, placed the company in liquidation last week, after it booked financial losses and had borrowed to unsustainable levels.
Liquidator Trevor Laing said in his first report this week Food Equipment had traded at break-even point or made small losses in earlier years, but in 2012 it incurred a ''large loss'', and would also likely book a loss in 2013.
The directors were unsuccessful in finding buyers for the business, which prompted them to take professional advice and petition for liquidation.
''A proposal to restructure the business was also considered but the risks of the situation becoming worse was considered too high,'' Mr Laing said in his report.
Staff were estimated to be owed $15,000, as preferential creditors, while there were 16 secured creditors estimated to be owed $250,000 and 82 unsecured creditors owed $203,000.
Mr Laing said given the levels of preferential debt and secured debt, early indications were that it was ''unlikely'' any funds would be available for the unsecured creditors.
