A struggling Green Deal installer owes creditors £3.4m, insolvency documents show.
NWS of Barnsley is in debt to more than 120 businesses and organisations - including £156,000 to employees.
The company, one of the largest installers of energy-saving measures in the country, owes HMRC £327,641 income tax and £223,171 corporation tax.
It also owes more than £50,000 to Barnsley firms Able Access Scaffolding, Amco and Cudworth Concrete Fencing, as well as Hilti tools, Sheffield City Council and Volkswagen Leasing. But by far the biggest creditor is company founder Stewart Davies, who is owed £1.367m.
NWS made £1.8m profit in 2012 but lost £2.2m last year and had a deficiency of £3m at the end of September, according to insolvency documents.
The firm, of Maple Close, Tankersley, Barnsley, expanded rapidly after being approved as an installer and assessor for the Government-backed Green Deal energy-saving scheme.
But in documents issued by Seneca Insolvency Practitioners, NWS directors Russell Cowan and Alix Fellows say the company hit problems due to early closure, unexpected delays and sudden reductions in eight Government subsidy schemes.
Now they have applied for a Company Voluntary Arrangement which they say will lead to creditors being paid 11p in the pound. The alternative - liquidation - will see them receive nothing, they say.
The firm has also launched a judicial review against the Government over some ‘withheld’ payments.
The documents state, ‘The directors and shareholders are suggesting that, to prevent creditors from receving no payment as a result of Government’s actions, they are personally willing to commit a fund of £250,000 to be shared between all creditors equally…in order to reduce creditors’ losses but also preserve the accreditations, certifications and infrastructure to...enable the company to trade again in the future should the judicial review by successful.’
Creditors will be asked to agree the deal at a meeting on October 20.