Formpro MM went into administration with KPMG on 21 December 2009, and was sold a day later to former owner Michael Hughes in a pre-pack deal.

It has emerged that Latcham Consulting, the vehicle Hughes used for the pre-pack, paid £150,000 for the fulfilment side of the business.

Formpro owed £7.92m to creditors – £3.98m of which was owed to trade creditors. Just under £1m was owed to its 110 employees, including former managing director Paul Anderson, who was owed £129,000.

Pitney Bowes Finance was the hardest hit, owing £1.89m. Other large creditors include Xerox subsidiary Continua (£101,000), Postal Choices (£587,000) and Xerox Finance, which lost £120,000.

Midway Colour Print, which went into administration in late January, was owed £5,379.

Latcham Consulting is also noted as a creditor, as is Broomco (4165), Formpro MM's holding company, of which Hughes is also a director.

KPMG's report carries three years' worth of trading results, showing that Formpro posted pre-tax operating losses of £892,000 in 2006, £2.7m in 2007 and £3.2m in 2008.

The administrator is also investigating the position of Michael Hughes prior to its appointment.

It said: "The administrators have been advised by Michael Hughes that he resigned as a director of the company prior to the appointment.

"However, it appears that the relevant documentation was never filed at Companies House. The administrators will investigate this further throughout the course of the administration."