THE LATEST figures for Varleigh, the property company whose backers include developer Bernard McNamara and public relations adviser James Morrissey, show that the business owes €63 million to its banks, while its main asset is worth €59 million.

Varleigh owns a development site in Tallaght, Dublin, and was involved in a High Court battle with food group, IAWS, now Aryzta, last year, which was subsequently settled.

Its balance sheet for March 31st, 2009, the end of its financial year, shows that it was in the red by €7 million. Its assets came to €60 million, while its liabilities were just over €67 million. The notes to the accounts show that most of the liabilities were bank debt, which came to €63 million.

Its main asset, the Tallaght site, is classed as a work in progress, and is valued at just over €59 million. However, the directors point out that this value is based on the site’s cost, as the uncertainty in the property market means that it is not possible to put an up-to-date price tag on the land. The auditors’ report points out that the company’s ability to continue as a going concern would depend on the support of its banks.