A number of property syndicates involving Anglo Irish Bank in the UK have gone into receivership and the nationalised bank has written down its interest in them to zero.
The bank holds investments in two property funds in the UK and these funds in turn make investments in various property partnerships. Anglo said the partnership properties are located throughout the UK and were benefiting from upward-only rent reviews.
The company holding the interests, Anglo Irish Commercial Properties (No 1) has reported losses of €7.4m for 2009 after taking impairments on investments.
But since the financial year ended, difficulties have grown.
"A number of the underlying partnerships existing below the two funds have experienced difficulties with their relevant external bankers,'' said the company.
"Consequently in a number of these underlying partnerships receivers have been appointed over the relevant properties.
"As a result, the company's relevant share of these interests have been reduced to nil resulting in additional permanent impairment since the period end," said Anglo.
The impairment is for £2.5m (e2.9m) and the UK company has also been permitted not to repay loans to Anglo totalling £12.5m. Anglo has waived this amount, which came in the form of two separate loans.
The main Anglo Irish company in the UK is CDB (UK), which has not published accounts for several years, although the UK performance of Anglo is consolidated into its full accounts.
Anglo is now wholly dependent on the Central Bank, the Government and the ECB to remain a going concern, the accounts for Anglo Irish Commercial Properties makes clear.
"The board of Anglo Irish Bank Corporation has assumed the continuing availability of secured funding facilities with the Central Bank of Ireland and other special funding arrangements if required,'' state the accounts.
The two investments held by the UK company are Anglo Irish UK Property Fund SLP and the Second Anglo Irish UK Property Fund SLP.
Anglo is entitled to between 27.4pc and 18.7pc of the profits (or losses) of both investments, once general expenses are deducted.