Most creditors of Sigma Finance, the last fund to collapse in a once $400bn investment industry that was decimated by the credit crunch, face complete losses when the assets of the structured investment vehicle are sold next week.

Ernst & Young, the receivers to the vehicle who took charge when it ceased trading in early October, have a mixture of bank debt and structured bonds with a face value of $2bn to auction off in order to try to repay $6bn of senior medium-term note holders.