Northern Bank loses £10m over bust builder Younger Homes
The collapse of a County Londonderry house-building firm is set to cost Northern Bank almost £10m.
Younger Homes, which was based in Maghera, was placed into receivership in April.
The firm owes the bank almost £13m but the estimated value of its assets is now less than £3m.
Unsecured creditors are owed a further £3.4m, none of which is likely to be repaid.
The largest unsecured creditor is the firm's owner, Michael Young, who is owed almost £2.5m.Prolonged downturn
In a statement of affairs filed by Mr Young, he stated that the estimated value of the firm's development sites may not be accurate because of the uncertainty caused by "the ongoing economic crisis".
He added: "Ultimately the only way to know for sure what they are worth is to liquidate them; they are only worth what someone can and will actually pay for them."
The firm's largest site is a 37-acre plot in Omagh with outline planning permission. Its estimated value is £1m.
The firm also had sites in Cookstown, Claudy, Gulladuff and Maghera.
The Northern Ireland construction and development sector has been stuck in a deep and prolonged downturn following the bursting of a property price bubble.
Firms whose focus was house-building have faced particular problems and the most vulnerable are companies which borrowed heavily to buy land around the peak of bubble.
Official figures suggest that the construction sector experienced slight growth in the last three quarters indicating that some stability may be returning.
Despite this, more firms are likely to go out of business as the banks work through their property loan books.