Two Liverpool-based property companies have gone into administration reflecting the state of the market.
Linenhall Property Investments Ltd and its subsidiary, Moorfields Property Ltd, were owned by Merseyside solicitor Paul Rooney, founder of the Paul Rooney Partnership.
The companies owned a number of property assets in Liverpool, Chester and Bootle and did not employ any staff.
Kerry Bailey and Graham Newton of BDO have been appointed joint administrators to the two firms on 21 January 2014.
Kerry Bailey, BDO business restructuring partner, said: “The joint administrators are seeking buyers for the assets of the company, and are working to maximise value for the benefit of the creditors.”
Both companies filed accounts to Companies House for the year ending 31 March 2013, showing a decrease in market value of the properties, a drop in occupancy levels and the breach of bank covenants.
Posted towards the beginning of January, the accounts for Linenhall Property Investments were prepared representing the company as other than a going concern.
According to the accounts, Linenhall and Moorfields owe bank loans worth £500,000 and £9.3m respectively, both due within one year.
There are mortgages over the properties and in relation to the bank loans, Rooney had provided a personal guarantee of £755,000.