WORKERS who lost their jobs following the collapse of a Galashiels building firm are in line to receive more than £300,000 owed to them.

A total of 38 staff were left out of work just over a year ago when Murray & Burrell went into administration.

The company, which was established in 1928, called in receivers after running into financial trouble in November, 2016.

More than a year on, and following a legal challenge for additional money, settlements worth more than £320,000 are now owed to the former employees.

It was calculated that the tradesmen and office staff who lost their jobs were due around £34,000 in wage arrears and a further £187,500 for notice and redundancy pay.

A total of 15 union members also took Murray and Burrell to court seeking Protective Awards for a failure to consult with them.

And the judge at the employment tribunal agreed with them, awarding them a further £109,000 from the asset pot.

The £34,000 of wages and £8,500 of the Protective Award will be settled first by administrators under preferential credit.

In last month's report to creditors, administrator Richard Gardiner stated: "Preferential claims are estimated at £34,000 in respect of employee claims for arrears/notice pay with a potential further £8,500 following Protective Award being made by employment tribunal.

"I anticipate that preferential creditor claims will be paid in full."

The outstanding balances owed to each of the workers falls within ordinary claims, which is projected to be in the region of £1.99 million.

Many local businesses and service providers are also among the ordinary claimants.

But the administrators are confident that a significant share of this cash will also be paid when all of Murray and Burrell's assets are finally sold.

Mr Gardiner added: "The level of dividend will depend on the final sales values that can be achieved for the various land and properties and, whilst I still anticipate that a substantial dividend could be available to ordinary creditors, I am unable to provide an estimate of the timing or the quantum of such dividend until such time as the outcome of the asset realisation is known."

So far the former Murray and Burrell builders yard in Galashiels has sold for £167,000 to a pension scheme set up by a former director of the company, Alexander Kemp.

The Craigpark Court development site in Galashiels was sold to a social housing provider for £540,000, and a small plot at Damhead fetched £7,500.

An online auction of plant, machinery and vehicles raised a further £87,408.

Administrators have also recovered debts owed to the company worth a net £124,305.

But, so far, administrators have been unable to sell the Buckholm North site on the edge of Galashiels, valued in the region of £750,000 to £1million, land in Lilliesleaf earmarked for seven houses, worth more than £200,000, the company's former offices at Botany Mill, valued at more than £100,000, and an area of land at Lower Buckholm, worth up to £75,000.