The collapse of Dundee building company Muirfield Contracts is one of the greatest shocks ever inflicted on the business scene in Tayside and Fife.
It was swift and brutal with hundreds of creditors owed at least £6.9 million.
One long-established company which traded with Muirfield had to shut its doors and there are real fears that more will follow.
One creditor said Muirfield’s unexpected demise had hit them “like a bus”.
The devastating event demands answers but there is little hope that the creditors who troop into a Dundee hotel for a meeting on Thursday will hear anything to satisfy them.
Administrators Campbell Dallas, who had to make 258 Muirfield staff redundant and put a further 110 sub-contractors out of work, are trying to rescue the company or realise its property to compensate creditors.
They have tried to cut their way through the maze of corporate woodland planted around Thomas John Stodart’s companies.
Rather than finding a clearing, the administrators have found themselves stuck in a dense forest without a map.
Mr Stodart’s financial affairs are complicated, and the situation is worsened by the administrators finding that he is holding information back.
His statement of affairs as part of the administration process has to reflect the “true and complete” financial position of a company.
Key liabilities have been omitted and there is an unquantified reference to floating charge creditors.
His statement is supposed to give creditors an idea of whether they will get any money back but it is lacking in enlightenment.
Muirfield’s directors are meant to provide information that reflects the company’s financial position to the best of their knowledge. Have they done so?
Campbell Dallas think the values, assets and liabilities suggested by Mr Stodart are “materially different” from those that appear in Muirfield’s books and records.
No supporting schedules have been provided by Mr Stodart for debtor balances and retentions, and the administrators comment: “The book value of contract debts appears to be significantly understated.”
Muirfield was sold by founder Maurice McKay in May 2013 to a company called Ensco 395 after which Mr Stodart was appointed joint chairman. His private equity group Azure Investments was the new name over the door and promised great things.
Just 10 months later Muirfield spectacularly collapsed, with Mr Stodart blaming its downfall on several reasons.
These included inheriting loss-making contracts, an inability to secure insurance-backed performance bonds placing a strain on cashflow, poor management and under-pricing of contracts, poor sales of property, overstatement of profits in prior years, and inability to raise new investment.
Why were issues like loss-making and under-priced inherited contracts and overstatement of previous profits not noticed when he bought the company?
Did Mr Stodart not carry out sufficiently diligent searches of Muirfield’s books when he took over?
Muirfield’s first annual report and accounts under Mr Stodart’s ownership gave little clue of any woes.
In the year to October 2013 the company had a turnover of £48.5m, a pre-tax profit of £1m and net assets of around £9.2m.
Margins on contracts continued to be challenging due to the competitive nature of the market, but the balance sheet was strong and he said it provided confidence for clients and other stakeholders.