Valto Ltd, owned by multi-millionaire brothers Shamus and Francis Jennings, has collapsed into administration following crippling losses reported over the past two years.
Initial reports released in January appear to suggest that the Northern Ireland-based outfit owed well over £120 million to its primary lender, Ulster Bank.
The property investment firm reported £21 million losses back in its 2012 accounts, on top of a £36 million loss in the 18 months to March 2011.
Appointed administrator, BDO has quickly stressed that Valto’s extensive portfolio of boutique and commercial properties have gathered keen interest.
In 2012, Valto had operating profit of £3.4 million; however this was soon completely wiped out following the sale of investments, write-offs and an interest bill of £6 million.
At the time, according to its accounts - Valto had net liabilities of £169,000, a rather considerable different to its net assets of £95 million back in 2009.
Speaking on behalf of BDO, a spokesperson also expressed that that Valto had fallen victim to a volatile and wildly fluctuating UK property sector, and had endured significant reductions in the value of its investment properties.
Continuing, the BDO spokesman added: "The restructure has been undertaken to rebalance the group's financial position and the directors had appointed administrators from the consultancy BDO."
Valto owners, the Jennings brothers are regularly rated as among the wealthiest people in the country.
Back in 2008, the brothers’ sold their building services firm, Rotary, to an Australian engineering company in a deal worth nearly £100 million.
Reports also suggest that in the same year, the pairing sold the Cromwell Hospital in London in a £90 million deal.
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