Collapsed firm had registered a mortgage with BoI
FAILED Northern Ireland property firm McDaid Developments registered a mortgage with Bank of Ireland just 10 days ago on lands that include an abandoned railway line in Donegal, according to company filings.
The bank is set to lose up to €42m following the June collapse of the property company. Bank of Ireland was granted a charge over the railway line in Doonan, which was acquired by McDaid Developments from CIE in 2006.
Based in Derry, McDaid Developments (Ireland) is the latest victim of the collapse of the property market.
The company was placed in administration in June under the auspices of Tom Keenan of Keenan Corporate Finance in Belfast. McDaid Developments, which was owned by Peter McDaid, had expanded its portfolio of residential development sites via significant leverage from Bank of Ireland.
At the time it was placed in administration, the company owned 13 sites at various stages of construction. It had come under pressure from third-party creditors and was unable to service its bank debt.
In a statement of affairs, Mr McDaid said the land held by his company should have been able to realise £20m (€23.5m).
However, the administrator said the land and property was only likely to fetch £7.6m (€8.9m).