ADMINISTRATORS say a series of inter-company debts are behind the £40million collapse of a Bolton property empire.

An investigation into the demise of Harewood Associates, run by Peter and David Kiely, has also cast serious doubts over the likelihood of the bulk of the losses being repaid.

As previously revealed first by the Bolton News, hundreds of investors in Harewood, owed a combined £31.8m, look set to recoup just 16 pence in the pound on their savings.

An anonymised 888-name creditors list, compiled by insolvency firm Begbies Traynor, shows that while some held just a few thousand with Harewood, some of the investments topped £100,000 and one was as much as £250,000.

Administrator Dean Watson said, in a statement of affairs for Harewood, that their largest debt was to Sherwood Homes, at £19.2m.

This firm is owned by Clifton Argyle Ltd, which in turn is run by Peter and David Kiely.

“We have written to Sherwood to formally demand the repayment of the monies due. We have not received any response,” said Mr Watson.

Another £16.7m is owed by Harewood Venture Capital (HVC), another Kielys vehicle, which was placed in compulsory liquidation on April 1. No recoveries are expected from either Sherwood nor HVC.

A third outfit, Lansdowne Investment Partnership, also under the Kielys’ stewardship, as part of Walbury Commercial Ltd, owes £2.8m. This firm has acknowledged the debt and there may be some prospect of a partial recovery.

The same is being said for Southworth Construction, a further Clifton Argyle offshoot, which owes £1m.

Two other Kiely companies, Prestige New Homes and Walmer Homes Northern, owe £415,000 and £41,000 respectively.

Further enquiries are also being made concerning a firm called Equalscale, which transferred a Blackburn landholding worth £1.16m to Heron Homes.

The administrators will continue to investigate possible asset recoveries and report back in six months’ time.