Gathering businesses told they're not getting a penny

But the creditors, who supplied goods and services for the two-day clan event in Holyrood Park in 2009, today insisted the confirmation had reinforced their determination to continue the fight for compensation.

The Evening News revealed last week that the Gathering brand, once valued at 100,000, had been bought by Stirling Council for 6000.

Together with money left in the bank account of The Gathering 2009 Ltd, the company behind the event, that provided only enough to pay the fees for the liquidation process.

Edinburgh-based PR consultant Martin Hunt, one of those left out of pocket, said: "I thought we might get something, but if they have sold the intellectual property rights to Stirling for 6000 that's not going to go very far."

In his letter to the creditors, liquidator Derek Forsyth of Campbell Dallas, said an offer from Stirling was accepted in August last year, but the council "significantly reduced" the offer in December and, after approaches to other potential buyers, the revised 6000 figure was accepted as the best offer available.

Mr Forsyth told the creditors: "After the costs of liquidation, there will be insufficient funds available to enable payment to any class of creditor."

Mr Hunt has called on First Minister Alex Salmond to convene a meeting with the city council and the creditors to find a solution to the creditors' plight and avoid a court battle.

He voiced frustration at the government and the council over the situation. "Every time they respond it's the same - they have sympathy for the creditors. I don't want sympathy, I just want my money. In the great scheme of things it's a very small amount, but it's very important to small businesses like mine."

In a letter to the Evening News today, city council leader Jenny Dawe insists the authority has no moral or legal obligation to pay the debts of a private company. She says: "The loss experienced by various businesses is caused solely by the failings and collapse of The Gathering 2009 Ltd."

Meanwhile, deputy council leader Steve Cardownie said he had backed the controversial attempt to rescue the Gathering company, but insisted he never approved a press release saying it would be taken over by tourism body DEMA.

"We had not been informed DEMA had approved the deal. The wording was fine, it was the whole timing that was wrong."