LESS than £1,000 is likely to be available to share between creditors who lost money when York Business College collapsed.

Liquidator Mike Saville, of Grant Thornton solicitors, told a creditors' meeting that it was "unlikely" that there would be a "substantial dividend" to those owed cash when the well-known college went out of business last month.

The meeting, held at the college's headquarters on Museum Street, was told that the company had been shedding money after losing a £70,000 Government contract for adult training in 2001. The Government also withdrew individual learning accounts and the college was hit further when, last year, one of its biggest clients - Norwich Union - withdrew its IT business to take its training in house. The estimated total deficiency was said to be £315,569.

Creditors heard that director Michael Milburn had been loaning the college money from one of his other businesses, Acadecom Training Limited, and that this had helped the company to continue trading.

But last month, following discussions, the directors decided "given the lack of prospects for the company" to proceed into liquidation. Mr Milburn told creditors at the meeting: "Clearly this is a very sad moment for all of us. I think you will have realised, from what's been said, that we tried to keep York Business College for a couple of years when it was trading very unprofitably.

"Regrettably, we reached the conclusion we reached in April.

"I apologise to everyone who has suffered as a result of this but assure you that we did all we could to try and carry on."

Liquidators asked why the directors did not stop banking the cheques of students until April 17, but were told that while the situation had been of concern, the business was being funded by Acadecom Training Ltd and it was not until April 21 that it was concluded that there were no viable alternatives.

Mark Townend, 25, of Tadcaster Road, forked out more than £2,000 for a computer course.

He said afterwards: "I am not going to receive anything like I paid. It appears they did make a lot of effort (to keep it going).

"It is small comfort and I am trying to look at different avenues at the moment."

Updated: 10:26 Thursday, May 22, 2003