Creditors of Duncan Web Offset will be forced to absorb at least 4.5m in bad debt, according to the administrators report.

The speed of the companys administration and subsequent closure in June shocked the industry (PrintWeek, 8 June), after finance company GMAC Commercial Credit appointed BDO Stoy Hayward.

In the report to creditors, receiver Simon Michaels of BDO Stoy Hayward said: Unsecured creditors are estimated to be due 4.5m. There will be insufficient funds for anything other than a nominal return to the preferential creditors. Furthermore, there are unlikely to be funds available for distribution to unsecured creditors. It is not yet known how much will be outstanding to preferential creditors.

Among those believed to be owed six-figure sums is Duncan Web Offsets ink supplier, Coates Lorilleux. Other substantial creditors include Kodak Polychrome Graphics, M6 Paper and Premier Paper, which is owed 330,000.

A spokesman for M6 Paper said: We are creditors, but were insured. Its very sad for all concerned with Duncan Web Offset, but it was some months ago and were moving on.

The firm had book debts of 2.5m when the receiver was appointed, but the lions share of this has paid off GMACs 2.04m. It is understood that two associated companies, Duncan Print & Packaging and Duncan Web Holdings, had given cross guarantees to the bank for borrowings by Duncan Web Offset.

In 1999 the firm embarked on a 18m capital expansion plan, which included a 48pp MAN Roland Lithoman, Barco CTP system and new premises.

National Print Database partner Steve Mepham said: The web market is very aggressive. Big web players are doing work at unsustainable rates because work is so hard to find. There are likely to be more casualties.

Story by John Davies