A property company, the collapse of which led to the loss of deposits for 95 homebuyers, has been put into temporary liquidation by the High Court.

The court today refused to approve a survival scheme for Laragan Developments.

Mr Justice Frank Clarke expressed concern that the firm was being used as a 'vehicle of convenience' by its parent company, the Hanly Group.

Laragan has liabilities of €147m, with €101m owed to Alan Hanly of the Hanly Group.

Many creditors told the court they would prefer to lose everything so a liquidator could carry out a full investigation.

The case returns to the High Court at the end of the month.