A PROPERTY company behind plans for more than 200 homes in Letterkenny has gone bust.
Bank of Ireland has confirmed it has appointed receivers to Carn Properties which has conditional planning permission to build 181 houses and 32 apartments at Drumnahoagh in Letterkenny.
Ulster Bank has already appointed a receiver to a Carn site in Roscommon.
The firm’s last accounts showed it owed the banks around €22 Million.
One bank insider told donegaldaily.com: “Carn was based in the North but had property which it had valued at well over €30M three years ago, but now of course it’s not worth a third of that.
“The company is in breach of its loan-to-value agreements and the banks have appointed receivers.”
It means yet another Co Donegal property development has been put on hold.
The company had planned to include a bridge over the river Swilly as part of the development which was opposed by several companies and people.
Meanwhile An Bord Pleanala has agreed to allow changes made by businessman Jason Black to his Voodoo nightclub in Letterkenny.
Also in planning the IDA has advertised for a renewable energy centre – also in Letterkenny.
It will be based at the Business and Technology Park.
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