Hotel staff are let go as Belfast's Ten Square after administration: Business owes creditors more than £4m
Exclusive: Statement of proposals from administrators EY has outlined the extent of the business's debts
A number of staff have been let go at Belfast hotel Ten Square following its administration, with the business owing creditors more than £4m, it can be revealed.
An award-winning hotspot in the city centre - which had been owned by property developer John Miskelly - but control of the business was taken over back in January.
Now a detailed statement of proposals from the administrators EY has outlined the extent of the business's debts.
The hotel - which was run under the company name of Yorkshire House Ltd - had its debt bought from Nama, the Republic's bad bank, by Promontoria Eagle Ltd last July.
But the company was "unable to meet its debt when they fell due" and despite "debt restructuring arrangements" being discussed with the directors "negotiations were unsuccessful".
That led to administrators being appointed.
It owes Promontoria Eagle Ltd - a company which is linked to Cerberus - almost £3m.
Yorkshire House Limited also guarantees debt out to Promontoria by its parent company Killynether Ltd - amounting to more than £15m, according to administrators.
It had employed 84 full and part-time staff, but administrators have said that "unfortunately it has been necessary to make a number of staff redundant" since taking the wheel at the hotel.
The four-star venue is now being operated by Ireland's largest hotel firm, Dalata - and being run as normal.
The hotel occupies a Grade 1 listed building within Donegall Square called Yorkshire House.
Creditors are now owed around £4.2m from Ten Square, which the report says amounts to "at least 10% of the total debts of the company".
The administrators' report also states: "It is highly unlikely that there will be sufficient funds available to enable a distribution to the unsecured creditors other than by virtue of the prescribed act".
The 23-bedroom hotel at Donegall Square South was sold to Mr Miskelly by Nicholas and Paul Hill, owners of the Galgorm Resort near Ballymena, in 2008.
The business reportedly went for £10m and first opened its doors back in 2000.
Yorkshire House Ltd, the company which had been running Ten Square, showed a loss of £161,000 its last set of accounts - for the year ending March 2013.
It's one of several businesses operating under the parent company of Pyperhill Ltd, of which Mr Miskelly is listed as a director.
Pyperhill Ltd, which is registered to an office on Belfast's Lisburn Road, suffered a loss of £35.9m for the year ending March 31, 2013.