AIB appoints receivers to three Kemark properties
Allied Irish Banks (AIB) has appointed receivers to three properties that were owned by a County Armagh developer.
The bank has taken control of two properties in Newtownards and one in Strabane from Kemark Ltd, which has a registered address in Tandragee. Kemark's last accounts, for the year ending June 2011, state that it owed its banks more than £42m. Its properties and work in progress were valued at £43m but auditors said there was "limited evidence" for this. Filings at Companies House suggests that Kemark has borrowings with Ulster Bank as well as AIB. A sister company of Kemark, New Quay Developments, entered a voluntary arrangement with its creditors in September. A voluntary arrangement is a legally binding agreement between a company and its creditors that allows the firm to stay in business while restructuring its debts, In this case New Quay Developments' creditors, who are owed almost £2m, have accepted a deal which will see them get 5.5p for every £1 they are owed. The construction and property sector in Northern Ireland has suffered severely in a prolonged downturn. Banks are continuing to take enforcement action as they work through the property loans on their books.