Eatonfield Developments, a subsidiary of publicly listed Cheshire-based Eatonfield Group, has been placed into liquidation.
The announcement was made on Monday after a meeting between the board of Eatonfield and the creditors of Eatonfield Developments.
Zolfo Cooper LLP has been appointed as liquidator to Eatonfield Developments. The majority of the group's property assets are owned by Eatonfield Developments, the group said in a statement to the stock exchange, and are subject to "bank loans from various senior lenders".
The statement continued: "Under the loan arrangements in place, these properties are each subject to separate legal charges in favour of the relevant lenders and, in respect of some of these properties, Law of Property Act receivers have now been appointed. The board is in discussions to establish whether Eatonfield can assist certain of the lenders in realising the value of their security. A further announcement will be made in due course."
Shares in Eatonfield Group were suspended in May.