By Marina MelloBritish American creditors faced a new blow yesterday after it was confirmed an anticipated sale of the defunct company’s building on Front Street fell through.The official receivers of the folded Bermuda branch of British American Insurance said the four-storey building has been relisted on the market and for a substantially lower asking price than before.The steel-framed 11,080-square-foot building is listed with Coldwell Banker Bermuda Realty for $2.7 million, when last April the asking price was $3.6 million.The drop in asking price means the final distribution to be divided among creditors or policyholders still awaiting promised payouts from the company’s 2009 collapse will be even less than expected. They’ve agreed to a plan giving them less than 50 cents on the dollar of the value of policies they had paid into for years.Mike Morrison, of liquidator’s agents KPMG Advisory Ltd, told The Royal Gazette yesterday: “The Official Receiver and his realtor have been negotiating with a potential purchaser. These negotiations have continued for a considerable period of time. As no contract for sale has yet been executed the building remains open to offers and as such the decision has been made to relist it for sale.”Mr Morrison added: “The level of offers received to date, the present economic situation and our realtor’s advice have resulted in the building being marketed at a lower price. It is worth noting that the potential purchaser, who initially offered in excess of the current asking price, has subsequently reduced its offer.“It remains the Official Receiver’s objective to conclude a sale for the best possible price as soon as practicable to enable the final distribution to be made to creditors. The amount the building is sold for will affect the level of the final distribution.”The liquidators had been hoping to give creditors their full allocation in one distribution, including their share of funds from the sale of the BAICO building. BAICO owns 40 percent of the building with the other 60 percent belonging to the BAICO Bermuda pension scheme.But because of the delay in the sale of the building, a decision was made to give policyholders partial payouts this past December.There are approximately 3,800 BAICO policyholders and 6,000 policies. The branch’s assets total almost $11 million and its liabilities around $21 million. BAICO’s Bermuda business, which is a branch of its parent company in the Bahamas, went into receivership in August 2009.