BOVALE LTD, a UK company owned by brothers Tom and Michael Bailey, had net liabilities of £37.3 million at the end of September 2011, and is negotiating additional funding, according to accounts just filed.

The Shropshire-based building company will seek finance elsewhere if the negotiations do not prove successful, according to the accounts, which are dated September 5th, 2012. The finance is needed to complete property developments to a stage where a positive cash flow can be generated.

The abridged accounts show the company had investment properties with a book value of £4.97 million, down from £5.71 million at the previous year’s end.

The company’s 87.5 per cent holding in a joint venture, Castle Farm Telford, is noted in the accounts, which state that Castle Farm lost £4 million in the year to the end of September 2011, and had negative reserves of £45.3 million.

The accounts state the company and its solicitors are considering claims against certain unidentified parties with regard to financial irregularities that were identified after the balance sheet date but which have yet to be quantified.

The Bovale Developments group, based in Batterstown, Co Meath, has existed for 24 years.