THE OPERATING company of a property and construction firm with high-profile backers such as Dermot Desmond and Bill McCabe, went into liquidation yesterday.

Malakoff Ltd, the operating arm of Capital D Investments, was placed in liquidation at a creditors' meeting in Day's Hotel, Dublin, yesterday. The meeting was held in private and there was no statement of affairs available yesterday. It is understood that the company intends meeting all its liabilities.

Dublin accountancy firm, Baker Tilly Ryan Glennon is handling the liquidation.

The company had no employees. Its directors are Capital D founder John Morrissey and Cearuil Morrissey, while Omar Bhamjee is company secretary.

Malakoff managed the construction and development side of Capital D's business in return for a fee and profit share. It emerged earlier this month that building and property slowdown had forced the company to put its construction programme on ice, and as a result decided to wind up Malakoff. Businessman John Morrissey set up Capital D in 2006 and raised €20 million from investors including Bill McCabe's Oyster Capital, Mr Desmond's International Investment and Underwriting (IIU), and ESB chairman Lochlann Quinn.

There is no risk to Capital D's assets, which according to accounts filed with the Com-panies' Registration Office topped €23 million at the end of last year. Malakoff had debts of €33 million, made up of bank loans and loan notes. The borrowings were secured by a charge over the company's assets. Mr Morrissey personally guaranteed part of the loan.

Capital D has focused largely on buying properties with the intention of developing them. Mr Morrissey was recently reported as saying that it now intends to work on seeking planning permission to optimise the value of sites it has already purchased.

According to Companies Office returns, Mr Morrissey was the sole shareholder in Malakoff on September 30th last, the end of its financial year.