The majority of Yellow Buses creditors are likely to receive a fraction of the money they are owed.

The bus operator went into administration last summer with debts reportedly outstripping assets by around £1.33m.

Bournemouth Transport Limited, which traded as Yellow Buses, has now entered voluntary liquidation less than 12 months after the historic transport company ceased trading.

In a report giving notice of the move from administration case to creditors voluntary liquidation, practitioners Simon Rowe and Rachel Hotham of Milsted Langdon LLP filed an update on the financial position.

The estimated outcome statement dated June 14, 2023, said £1,742,955 was available in assets.

The administration costs totalled £674,082 leaving £1,068,873 for preferential creditors.

Employee claims of £46,808 relating to unpaid holiday, a bill of £46,054 with the redundancy payment service (RPS) and £705,668 to HMRC reduced the total for unsecured creditors to £270,343.

Administrators received claims totalling £7,670,315.57 from 127 creditors, including the RPS’s unsecured claim of £1,546,188 in relation to pension, redundancy and pay in lieu of notice.

The report said the current estimated dividend to unsecured creditors was 3.6 pence per pound.

As reported, unsecured creditors included insurers Arthur J Gallagher being owed £403,746 and BCP Council left £66,375 out of pocket.

From July 29, 2022, to June 14, 2023, Bournemouth Transport Limited had a trading deficit of £307,817.60.

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The administrators said claims from employees over unlawful dismissal had been instigated against the company.

“Two of these claims predated the administration, one of which has been withdrawn,” the report said.

“The remainder are progressing to tribunal and our solicitor at Burges Salmon is dealing with these claims on our behalf. At this stage we are unable to estimate the value of any tribunal claims in the proceedings.”

The winding up of Bournemouth Transport Limited commenced on June 27, with the appointment of Mr Rowe, Ms Hotham and colleague Jenny Young confirmed by a notice on Companies House published on July 5.