Original from Owen Hughes, North Wales Live - https://www.dailypost.co.uk/business/business-news/developer-collapse-leave-workers-firms-16393304
GM Jones Ltd in Llanrwst has left debts of more than £2.5m and up to 40 workers out of pocket
A developer that collapsed into administration is set to leave more than 200 creditors and 40 workers out of pocket - while a bank and finance firms should get paid.
GM Jones, in Llanrwst, had been one of the most successful builders in Conwy county - carrying out commercial and public sector schemes across the region.
Three years ago it secured £400,000 from the Wales Economic Fund to build a new headquarters and it then employed more than 100 workers.
But this March the company ceased trading with administrators from Mazars appointed.
Now a report has revealed what went wrong and the debts it has left to a bank and finance firms, tax chiefs and dozens of local and national companies. It also shows who is expected to get paid with the banks and other lenders at the front of the queue.
The Notice of Administrator's proposals by Mazars showed that back in 2015 everything was going well for the company which saw them push on with a new £1.3m headquarters at Parc Ty Gwyn in Llanrwst - which they moved into in 2018.
But that same year saw a significant Welsh Housing Quality Standards framework contract end - meaning a 34% hit to its revenues.
This saw the firm experience cash flow issues - and build up arrears with the HMRC.
Staff were laid off with numbers falling from 100 in 2018 to around 40 in March 2019 and loans obtained in a bid to support the business during this difficult period.
In March 2019 HMRC were threatening to file a winding up petition on the company and the directors concluded that administration was the best option and the company stopped trading.
Aberconwy AM Janet Finch-Saunders said at the time it was a blow to workers and had voiced concerns previously about the monitoring of the £400K grant from the Welsh Government.
The report has revealed the list of people owed money by the company.
Lloyds bank is the biggest creditor and has put in a demand for repayment for £1.34m with their loan secured against the site at Parc Ty Gwyn.
How much of this they will receive will depend on the sale of the land and former HQ but they are at the front of the queue when it comes to getting paid.
There is expected to be a demand of £160,000 from finance firm Merchant Money with a charge on land to the south of Parc Ty Gwyn although they could face a shortfall in what they receive.
Bibby Financial Services were owed over £115K but have so far clawed back £56K - reducing the liability to £59K.
Reward Capital has a sum of £153K outstanding and they are expected to face a significant shortfall.
It is worse news for former workers.
There is £54K owed to employees in wage arrears and unpaid holiday pay with these preferential creditors not expected to receive any money from the administration.
They have been directed to the Redundancy Payments Service for payment from the National Insurance Fund.
Finally there is a list of 199 unsecured creditors - many of them local firms - owed close to £740K.
They are not expected to receive a penny.
These range from £49K owed to Anglesey based builders' merchant Huws Gray to more than £600 to Nant Conwy Tyres.
Administrators report that work is now taking place to sell assets and recover other monies to maximise any payout to creditors.
A further report is expected to be released in the coming weeks.