Former IRA hunger striker Tom McFeely lost over €9m in the year ending 31 August 2008 and has written down the value of land and works in progress by his Coalport Building Company by more than €3.5m.

The valuations of works in progress were carried out by the company's quantity surveyor and "involve considerable judgments" with revenues based on "current market conditions". Accounts for the year ended 31 August 2008 state that "should there be further significant deterioration in the market then additional write-downs… may be required".

Coalport Building Company is owned by Tom and Noel McFeely and has a deficit in its shareholders' funds of just under €8m, compared to a surplus of more than €1m in its previous financial year.

Auditors DCU Accountants and Business Advisors inserted three emphases of matter into the accounts. "We draw attention to the fact that the company made pre-tax losses of €9,035,455 for the year ended 31 August 2008 and had net liabilities of €7,997,100 at this date," they said, adding this created the presence of a "material uncertainty" which may cast "significant doubt over the company's ability to continue as a going concern".

The auditors also stated that the company owed more than €14.2m in relation to a construction loan to a connected party – McFeely and his occasional business partner Larry O'Mahony – and that there was a balance of more than €6.45m owed in inter-company loans.

"The company's ability to continue as a going concern is dependent on the continued support from its lenders," the auditors said.

In relation to the works in progress, which Coalport said were worth nearly €20.2m, it said there was a material uncertainty about their value and this again "may cast significant doubt" on its ability to continue as a going concern.

A note to the accounts says that amounts advanced by AIB to the company are secured by three personal guarantees from the company's directors in the amounts of €2.8m, €1.8m and €190,000.

McFeely, O'Mahony and Liam Carroll recently won a €140m case against them taken by rival developer Noel Smyth in relation to future development at The Square at Tallaght in west Dublin.

McFeely lives in the former German embassy at Ailesbury Road in Dublin. He was sentenced to 26 years in the late 1970s after being charged with attempted murder of police, possession of weapons and a post office robbery.