FIRMS which are owed money from the failed company tasked with building Colchester’s Curzon cinema say there are still “unanswered” questions about the situation.

Some firms say they have laid off staff after not being paid as much as £144,000 by Ispace Corporate Interiors.

The company, which is run by Colchester-based Matthew Diver, was tasked with overseeing the contracts for the new Queen Street venue, which opened in July.

READ MORE: Firm tasked with building new Curzon cinema goes into administration owing thousands

But a month later, administrators were appointed oversee the creditors’ report after a serious decline in cash flow.

The situation has had no impact on the Curzon, which continues to trade successfully in Queen Street.

Now the Gazette can reveal during a meeting of creditors - those out of pocket as a result of the collapse - with the administrator, it was agreed to move the company from administration to creditors’ voluntary liquidation.

That means instead of helping to repay the debt racked up by the company to avoid insolvency, all of Ispace Corporate Interior’s assets could be sold off and it will be dissolved completely.

Creditors hope that process could see more cash freed up to fund the outstanding debts.

In a statement, creditors said: “At a meeting of creditors held on October 22, 2018, the administrators statement of proposals were considered.

“The creditors agreed to approve the proposals with the modification that the administrator shall move the company from administration to creditors’ voluntary liquidation and that Michael Sanders of MHA MacIntyre Hudson be appointed liquidator. “

It adds: “The creditors agreed there were unanswered questions and concerns regarding the way in which the company business was conducted, and agreed an independent liquidator should be appointed to investigate what assets there are - including potential claims against third parties - and what recoveries can be made.

“MacIntyre Hudson appointment by the creditors was no way a reflection on the administrator or Parker Andrews Limited.”

Documents seen by the Gazette show the company owes more than 100 firms, involved in Colchester’s Curzon and other projects elsewhere in the country, more than £1 million.

It has assets of £321,000, of which at least £27,000 is set to go to former employees.

That leaves just £294,000 to share between companies, which may now only get as little as get 14p in the £1 of what they are owed.