THE extent of the crisis facing one of the region's best-known business empires has been revealed.
Cameron Hall Developments, the family firm of former Newcastle United chairman Sir John Hall, made a total operating loss of £90m in the year to November 2000.
Accounts finally submitted to Companies House on Friday show that the firm has written off nearly all its assets and records a loss of £53.8m on land it planned to develop, leaving its remaining property worth about £12m.
The company had faced a stiff fine for failing to file the books, which eventually turned up six months overdue.
The family mansion - Wynyard Hall, near Stockton - which Sir John dreamed would be passed down through generations, is on the market for £8m.
The business disposed of 3,000 acres of the estate for about £10m earlier this year.
The Hall family own almost 48 per cent of the shares in Newcastle United, which at one stage was worth about £200m. Shares now languish at 22p, valuing the club at £32m.
The accounts reveal that Sir John's Guernsey-based family trust, Wynyard, had to come to the rescue with £18.78m cash and a £16m loan, in return for shares in the football club as security. The shares are now worth so little that the company cannot be sure of repaying the loan and has recorded it as additional losses.
Meanwhile, the salary of Sir John's son, Douglas, as Cameron Hall's highest-paid director, increased from £78,000 to £327,000, and £5m of Newcastle United shares were paid into the executive pension fund.
Mr Hall, who is also vice-chairman of the football club, bought five cars from the company, which made a £58,000 loss on the deal.
The company then bought another vehicle back from him for £200,000.
Full year trading figures for 1999 are not included in the accounts, but they record that in four months to the end of November 1999 the company made a total operating profit of £5,396,000 compared with the £90m loss for 2000.
Mr Hall could not be contacted for comment on the accounts last night.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article