THE development company behind a ¤60 million hotel and golf resort in Ramelton and Carrigart has gone into liquidation, putting the future of the projects into doubt.

Relton Developments, the company leading the project, collapsed last week with debts of up to ¤5 million, according to the SundayTimes. Work on the resort stopped earlier this year amid reports of financial difficulties, however Relton Developments stated work had slowed on site because of poor weather conditions. The company had already begun construction on a ¤21 million Ramelton hotel on the shores of Lough Swilly. Plans also included 200 luxury apartments, houses and shops on the shore front. The company had recruited golf legend Jack Nicklaus to re-design St Patrick's golf links near Carrigart as part of the overall development. St Patrick's consists of two courses, Tra Mór and Magheramogorgan, which are close to Carrigart.

Relton ran into cashflow problems in recent months, prompting a number of construction contractors to walk off the site. Engineering consultant White Young and Green (WYG) subsequently brought a High Court winding-up petition in an effort to recover its debts.

The directors of Relton did not contest the petition, and the High Court last week appointed Declan McDonald, an accountant with Dublin firm Foster McAteer, as Relton's liquidator.

McDonald has since written to Relton's directors and auditors requesting they supply him with the company's books, records and financial position. He will conduct and investigation onto the company's collapse and explore the possibility of rescuing the project.

White Young and Green are owed about ¤250,000, while the Revenue is also owed money. McNamara Construction, which was contracted to build the Ramelton Hotel is also owed a significant sum.

Relton Developments is co-owned by father and son team Willie and Richard McCafferty and Dublin publican Noel Murray.