Two major Northern Ireland property developers have been declared bankrupt, was headlining BBC News (Northern Ireland).

The companies in question are:

  • Thompson Developments (Sam Thompson),
  • Lavelle & McAlinden (Fergal McAlinden).

The other issue is that Mr Sam Thompson was also being pursued by Anglo Irish Bank Corporation Limited regarding personal guarantees he signed 3 years ago (2009). His company owe cash to Ulster Bank as well.

Last month a receiver’s report showed that one of his companies, Thompson Lennox, owed Ulster £23m but that its assets are now worth just £3m.

The Northern Ireland property industry has been in crisis for around 3 years. Also, a certain  number of sub contractors and small developers have been bankrupted.

Not an easy situation to survive from.

Business banking has its risk like anything else linked to finance – it is a matter of measuring and analyzing the overall situation before signing an agreement which could involve a rather unpleasant ending.