The scale of debts owed by two sister companies involved in luxury homes development has doubled to more than £2m, creditors heard.
Meetings of creditors of island-registered Richmond Square Design Ltd and Richmond Square Construction Ltd were held yesterday at the Claremont Hotel in Douglas when Mike Fayle and Howard Smith of KPMG were appointed joint liquidators.
The level of debt disclosed in the statement of affairs produced by the directors is more than £2m.
There are about 200 trade creditors but a significant number have yet to file proofs of debt so there can be no definitive statements about final amounts due for some time, said Mr Fayle. The largest trade creditor exceeds £100,000, he revealed.
He added: ‘The level of creditors is rarely a fixed sum as there are inevitably claims that are made in relation to contracts that have to be assessed and ultimately agreed or amended.’
Mr Fayle confirmed that the Manx government was owed ‘mid-range five figure sums’ in respect of unpaid tax and National Insurance.
He explained that the liquidators will now take control of the companies and start reviewing their records with a focus on more recent trading.
‘This is not indicative of any concern but is a routine task applicable to all insolvent liquidations,’ he said.
Richmond Square has been involved in a number of top end developments including Ballacomish House, Ronague, and a design brief for Ballamona, a £30m mansion planned in Port Soderick with its own lake and private beach.
The two sister companies went into voluntary liquidation after directors called the creditors’ meetings.
A third company which is part of the Richmond Square group, Richmond Square Estates Ltd, is still trading.