Anglo Irish Bank has seized control of the shares of developer Paddy Kelly's Irish Italian Property Holdings (IIPH), the company which developed a winter Olympic village near Turin, Italy. The company had been listed for strike off by the Companies Office and last week Anglo appointed BDO Simpson Xavier as receiver.

IIPH's last filed accounts are for 2006 and show Anglo Irish Bank held a guaranteed bond of €5m in respect of IIPH as well as a debenture over its assets and a charge over its Italian subsidiary and a deposit account with a minimum of €2m.

In 2005, the Piedmont regional council had given a grant to IIPH's Italian subsidiary to help it open the ski resort and hotel complex.

At the end of 2006, IIPH had a shareholders' funds deficit of more than €12.5m

Kelly is one of a consortium of business people who own stakes in the company. Others, according to its last filed return, include Joe O'Reilly and the late Liam Maye of Castlethorn Construction and French-based investor Charles Fessell.

In its notes, IIPH said that a provision of €2.75m had been made against monies due from Heuston Hotels, which shares some common shareholders, "due to uncertainty surrounding the recoverability of this balance". The directors said at the time that they would provide financial support to IIPH if required.

Kelly, who had borrowings of more than €700m from Anglo, has suffered significantly in the property downturn and has admitted to the High Court that his liabilities exceed his assets. He is considering a bankruptcy scheme of arrangement.