SUB-CONTRACTORS who lost out when a York building firm went into administration look set to get very little money back.

Graves Construction Ltd, a family firm based near Wigginton, appointed administrators earlier this year after creditors refused to accept its proposal for a voluntary arrangement.

The business's crash was understood to have left creditors, including sub-contractors such as electrical, fabrication and plumbing firms, hundreds of thousands of pounds out of pocket.

Now a proposal by administrators Geoffrey Martin and Co, of Leeds, has been accepted by creditors at a meeting held last week at the Beechwood Hotel, in York.

Joint administrator John Twizell said that while the terms of the proposal were confidential, he could confirm that unsecured creditors would receive a very small dividend, equating to a few pence in the pound.

However, he said secured and preferential creditors should received full dividends. The unsecured creditors have not been identified but are understood to include a number of the sub-contractors employed by Graves.

Mr Twizell revealed that Graves' former HQ was now on the market, and the business was being wound down, with only three employees now remaining - who themselves would be leaving within weeks.

Graves was carrying out a number of projects on behalf of City of York Council when it went into administration, including a new community hall at Rufforth Primary School.

Work on the complex, which includes a sports hall, a community room, kitchenette, medical room and disabled toilets - all of which will be available for community use outside of school hours - was halted after the firm hit the rocks.

Mr Twizell said the job had now been completed, apart from a couple of minor matters. Another project, involving the construction of a block of flats on the site of the former Magpie pub in the Groves, York, was also halted after the firm went under. Mr Twizell said this work had since been given to someone else to complete by the owners.