Administrators handling collapsed contractor ISG are warning subcontractors and suppliers there will be insufficient funds left to pay any of the cash owed to them.

In letters to trade creditors, administrator EY confirmed that no further work would be carried out during the administration on existing contracts, including projects for Construction, Fit Out and Engineering services businesses.

It said: “The companies are being wound down under our supervision while we conduct an investigation of their financial affairs.

“At present, it is not anticipated that there will be any funds available for a distribution to creditors.”

One subcontractor told the Enquirer: “We weren’t expecting any good news, but to be told this just a few weeks into the administration shows how bad things must have got at ISG.

“There’s been no announcement of any asset sales or contract novations. It’s looking very grim.”

EY added that in accordance with the Insolvency Act, it would be preparing proposals for creditors within eight weeks of the 20 September administration date that would give a further indication any changes to dividend prospects.

Creditors are still being encouraged to submit claims should the final assessment of available funds improve.

A hard copy proof of debt form can be downloaded from the EY website which must be emailed to EY.