A company led by Dundee-based businessman Graeme Carling is now in exclusive talks about a deal.

Blair Nimmo, global head of restructuring and Joint Administrator at KPMG, said: “The Joint Administrators are pleased to announce they have appointed Catalus Energy Investments Limited as the preferred bidder and granted them a short period of exclusivity to acquire the business and certain assets of McGill & Co Limited – in Administration.

“Agreement of the sale is subject to due diligence and contractual agreement, however, both parties are hopeful that a transaction can be concluded in early course. Further information will be available in due course.”

McGill went into administration earlier this month with the loss of 374 jobs.

Its demise was blamed on challenging trading conditions and disputes and delays on a number of contracts.

McGill & Co was established in 1981 and provides services to clients in the residential, commercial and industrial sectors from its headquarters in Dundee and ancillary offices in Glasgow and Edinburgh.

The company trades through five divisions – mechanical & electrical services, facilities management, social housing, private residential and  fibre and wireless.

A spokesperson for Catalus Energy Investments Ltd. said: “We can confirm that Catalus Energy Investments, a group of professionals specialising in the consolidation of industries, mergers and acquisitions, finance and growth, is the preferred bidder in the sale of McGill & Co Ltd.”