Unsecured creditors of collapsed firm Erinaceous have been told that they will not be getting any of their money back.

Partners from KPMG delivered the bombshell in a report which also said the firm had been paid nearly £3.4m for it services.

Banks including HSBC, Bank of Scotland and Lloyds, will get about half the £235m they collectively lent Erinaceous, but creditors further down the food chain are expected to receive nothing, The Telegraph reported.

In the report, administrators Jim Tucker and Myles Halley said they did 'not consider that there would be the funds available to make a distribution to unsecured creditors'.

Further reading:

Lavelle's best efforts fail to save Erinaceous