The Pontypridd singer, sentenced to 35 years for child sex offences including the attempted rape of a baby, was a director of Goonies Touring Ltd.
The company made money from Lostprophets' concerts and merchandising.
However, the company was broke and owed thousands to creditors.
It was reported in the Daily Mirror at the weekend the former band members, including Lee Gaze, Mike Lewis, Stuart Richardson and Richard Oliver, would receive up to £150,000 each.
Goonies Touring had been highly profitable, with funds of almost £200,000 in the bank and hundreds of thousands of pounds in fees due to be paid from performances.
But after Watkins was charged with the catalogue of abuse the funds started to dry up and the remaining band members wound the company up.
Liquidators were unable to pay a small number of creditors, who were owed several thousand pounds.
A final creditors' meeting for Goonies Touring Ltd was held on the 17 December 2014 and the company was formally dissolved.
Watkins, 37, is still entitled to receive royalties and publishing fees for recordings, but cannot benefit from any earnings in prison.
The singer was also the sole director of dormant company Made in Hell Ltd, which has also been recently wound up.
The other former members of Lostprophets have been touring with their new band No Devotion after joining forces with American lead singer Geoff Rickly last year.
Paedophile Ian Watkins will not receive a £150,000 payout after a Lostprophets' management company was dissolved, the BBC has learned.