Updated: NI company with controversial development plans in Donegal goes bust

Bank of Ireland has appointed receivers to a Northern Ireland property development firm which had been planning a major housing development in Donegal.

Carn Properties had been given permission for the development of over 200 units of housing in Letterkenny just two years ago.

Permission for the Letterkenny development was granted in 2009 - the  Plans for the controversial development included a new bridge built across the River Swilly.

213 units of housing and a creche on a large area of land on the south side of the River Swilly close to Leck was also proposed.

Eleven objections were lodged against the development highlighting concerns about a range of issues including inadequate road, sewage infrastructure and  water shortages.

In a sign of the times, Carn Properties was one of the key objectors to another major development proposed for that area earlier this year by Blake Burke Ltd.

Bank of Ireland appointed the receivers to Carn Properties, with an address at Bellaghy, Derry last week.

According to the BBC, The firm's last accounts showed it owed the banks around £20m.

Those accounts, for the year up to July 2009, valued the firm's property at almost £25m.

However, its auditors said the value was uncertain in light of the current market conditions.