Donald Ferguson told Glasgow High Court how his Land Rover Discovery went up in flames outside his home in Jackton, South Lanarkshire, in February last year, reported STV.
Chard Construction, which once had a £45m turnover, had recently collapsed following problems on the luxury Blythswood Square Hotel in Glasgow.
The 53-year-old was giving evidence at the trial of Stewart Paul, who is accused an extortion bid on Mr Ferguson and two other directors. Paul denies the charge.
Chard Construction was the main contractor in converting the former Royal Scottish Automobile Club in Glasgow into a top hotel.
But trouble hit the work which Mr Ferguson said "completely killed cash-flow" forcing Chard into administration in January last year.
A total of 117 employees lost their jobs and 150 sub-contractors were owed a combined £7m.