Oxford United's creditors have been told they will only receive 4.4p for every pound they are owed, despite the Manor Ground being sold for a £6m profit.

The club, owned by Firoz Kassam, sold the ground in Headington to Firoka -- a company also owned by Mr Kassam -- for £6m in May 2001.

Earlier this year, Firoka sold the site for £12m to the Nuffield Nursing Trust, owner of the Acland Hospital. A hospital and homes are being built on the site.

By law, United's four major creditors had to be paid back all the money they were owed, which came to a total of more than £6m.

But smaller creditors -- who claim they are owed £9m -- were entitled only to get all their money back if the club made more than £6m from the sale of the Manor.

When Firoka sold the ground to the Nuffield at a 100 per cent profit in less than a year, many creditors claimed that Mr Kassam had sold it too cheaply.

Kroll Buchler Phillips, supervisor of a Company Voluntary Arrangement (CVA), launched an investigation, saying it was "concerned as to the rapid increase in value of the Manor Ground over this relatively short period".

The CVA, a contract used to settle disputes between creditors and companies, was struck in 1999 in a bid to ensure that creditors received some money back from the club.

Creditors agreed then to receive only a proportion of what they were owed to guarantee the club's future.

Kroll Buchler Phillips says its investigation was hampered by Oxford United's refusal to provide extra information about the sale to Firoka.

But the consultants have now told creditors in a letter that it would "not be in the best interest of the creditors to potentially use a substantial proportion of the funds remaining in the CVA to obtain further information from the club through the courts".

Former managing director Keith Cox has lodged a claim for £600,000. He will receive just £26,400. Another creditor, Patrick Nally, of London-based stadium building consultants Stadi Varios, was owed £35,000 for a package to save the club before Mr Kassam bought it. He is to receive about £1,540.

Mr Nally, of Stonesfield, said: "I'm as astounded as everyone else. A lot of people are pretty upset but there's not a lot anyone can do. It has been a complete nightmare from beginning to end."

He said the £12m the land fetched this year showed it should have been sold for much more than £6m initially.

"It was always a highly developable piece of land -- I don't think what it subsequently went for was a surprise to anyone," he said.

"Had the thing been sold at full value on behalf of the creditors, everyone would have been so much better off." Neil Cooper, of Kroll Buchler Phillips, said: "We have taken legal advice and we have exhausted all of our rights and powers.

"There are no further assets that we will be recovering for distribution to the creditors. We are therefore in a position to conclude the arrangement."

Mr Kassam was overseas and unavailable for comment at the time of going to press.