House hunters who put down deposits on real estate being developed by KES Development Limited are the most exposed now that the company has failed, official documents show.

KES, according to papers filed with the Companies Office of Jamaica, took some $480.5 million in deposits from individuals whose houses are yet to be delivered.

The company also had a salary bill of $1.9 million that was unpaid.

The homebuyers represent a little less than half the $1.06 billion of debt that sent KES into liquidation.

According to the statement of affairs filed by KES directors Hugh Scott and wife Elesa in December 2009, the company was also hundreds of millions in hock to its bankers - $143.45 million to Jamaica Mortgage Bank (JMB) and $253.29 to Capital and Credit Merchant Bank (CCMB), both of which are secured creditors.

There was also a $146.7-million tab for unspecified 'unsecured' loans.

The remaining $6.7 million was statutory payments due to Govern-ment, comprising $2.96 million of unremitted PAYE deductions, $558,214 in HEART Trust/NTA contributions, $840,392 in education tax, $727,291 of National Housing Trust contributions and $421,032 of National Insurance Scheme deductions.

$1.1b of assets

According to the documents, the company had $1.147 billion in assets at October 31, 2008, inclu-ding 'work in progress' of $752 million, land at $52 million and stock and equipment, $59.7 million.

Liquidator Ken Tomlinson, however, told a meeting of creditors two weeks ago that he was yet to confirm the valuations on the developments on the company's books.

JMB General Manager Patrick Thelwell told the Financial Gleaner that the bank has already disposed of two KES developments to recover some of the outstanding debt.

"We had a loan facility with KES that has not been paid off. What we have disposed of is the underline security of the loans," Thelwell said. "We had two properties that we had mortgaged and we have subsequently sold those properties and returned part of the depositors' money to the Real Estate Board."

The two properties are Old Church Road and Birdsucker Drive in St Andrew, both of which were incomplete.

Thelwell, however, declined comment on the current outstanding loan balance.

The sales occurred last year and earlier this year, which would place the timeline on one of the transactions after KES filed for liquidation.

Thelwell, however, disclosed that the bank was involved in the financing of two other properties at Dillsbury Avenue and Rosemarie Drive in Kingston - both of which the Real Estate Board said two weeks ago were completed and the units handed over to the original purchasers.

The Mountain Valley property on Old Stony Hill Road was, the Financial Gleaner has learned, put on the market by CCMB for $124 million. The for sale signs are now down and the entrance to the property chained.

KES Development was estimated to have some 10 developments under way at the time the Scotts chose to have the construction company wound up.

Other named properties are: 33 Jacks Hill Road, which the Real Estate Board said was completed but was problematic and needed dialogue with the financing bank, as well as Tavistock Terrace and Bamboo Avenue in Kingston and other developments in St Mary and St Thomas.

dionne.rose@gleanerjm.com