OUTSTANDING DEBTS of £6M and severe cash flow problems last week scuppered Lilley Construction's efforts to trade its way out of trouble following the collapse of parent Sunley Turriff last year.
Last Wednesday the contractor was forced into administration.
The 200 strong company went through a management buyout to avoid bankruptcy last summer and was making reasonable progress.
Bruce Cartwright, a partner at administrator Price Waterhouse Coopers, told NCE that the firm was making a small profit on a turnover of around £45M.
But it was owed £6M by its former parent.
Payroll and similar head office functions which had to be taken on caused further cash flow troubles, and the cost of tendering was becoming prohibitive.
Even so the company has developed a reasonably good workbook with about a dozen contracts in south and midScotland primarily, including one thought to be worth £10M.
'They had been looking for someone possibly to buy the company and provide the needed support, ' said Cartwright.
'We are trying to continue that strategy and clients and creditors have agreed a seven day period to achieve something.
'We have had a number of people to look around in the last few days and we set a deadline of midnight on Tuesday (20 January) for any offers.'