INVESTORS in a Bolton bonds scheme - which collapsed owing £32.7million - are now being offered just seven pence in the pound on their nest-eggs.

Administrators had warned previously that those who had put money into Chorley New Road based Harewood Associates could receive just 16 pence in the pound back.

But further investigations by Begbies Traynor have revealed the fall-out from the firm, run by Peter and David Kiely, was worse than expected. More than 880 creditors had been identified, as far back as June, with some investments topping £100,000 and one even reaching £250,000.

Investors had secured bonds, based on property schemes, offering returns on savings of around eight per cent.

One deal has been struck by administrators with Harewood debtor Lansdowne Investment Partnership, which is ultimately under the Kielys stewardship, which owed £2.8million. Administrator Paul Stanley confirmed an initial payment of £500,000 had been received and £2.3million was due in phased instalments between this month and October 2020.

And a further £40,979 has been repaid by Walmer Homes Northern, a former Darwen property firm, with Peter Kiely as a director.

But no recoveries have reported to have been secured from two other Kiely vehicles, Sherwood Homes and Harewood Venture Capital, which owed £19.2million and £16.7million to Harewood Associates respectively.

Another of their Darwen-registered offshoots, Southworth Construction, which owed £1million, was officially wound up by the administrators last month.

Mr Stanley added: “The revised best case estimate for dividend is seven pence in the pound. This is calculated based on the current estimated realisations, estimated costs and estimated creditor claims of circa £32million.”

The company will now be moved into creditors voluntary liquidation.

The Financial Conduct Authority, amid a string of collapses involving similar mini-bond investment schemes, has announced a ban on marketing them to retail customers, which will come into force from January 1.

In the space of a year, Harewood Associates had gone from posting a £4million profit to a £4.3million loss.

Investors were first warned something might be awry when they were told not to expect promised dividends on June 1. Administrators were appointed a short time later.