Dunergan Developments placed into administration

The house building arm of a major Northern Ireland construction business has been placed into administration.

Dunergan Developments, which was based in Magherafelt, is an affiliate company of FP McCann.

Dunergan Developments' accounts for 2011 show it owed creditors £28m while its assets were valued at £33m.

FP McCann, a major civil engineering and manufacturing firm, is unaffected by the move.

Dunergan Developments operated mainly in counties Londonderry and Tyrone.

It built houses in Maghera, Castledawson, Kilrea and Omagh.

Marketing material for another of its developments in Dromore, County Down, states that the firm has built more than 1,000 homes across Northern Ireland.

The firm was incorporated as FP McCann Developments in 1993 but changed its name in 2007.

The company lists its bankers as Bank of Ireland but is not clear who appointed the administrators.

The Northern Ireland housing market is in a deep recession - prices are still falling, demand is far below its peak and banks are imposing tough lending criteria.

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