Troubled builder McInerney recorded a loss before tax of €10.9 million in the first six months of 2010.
This compares to a €12.8 million loss for the same period a year earlier.
An exceptional charge of €5.9million was taken in the period under review, of which €4.5 million related to the write-off of the group's investment in Alanda Homes in Spain.
In an interim statement today McInerney said the future of the group will "largely depend" on the outcome of a restructuring process.
"The loss of the syndicate lenders in Ireland was unexpected and caused us to seek court protection for that business," the statement added.
McInerney said its balance sheet has negative net assets of €112.6 million and added the group was not in compliance with its principal banking covenants.
"Banking facilities have been rolled on a short term basis and the group depended on the continued support of its principal lenders for continued trading," it said. Irish lenders ceased to offer support for builder during August.
McInerney said the UK market improved gradually over the past year but further forward progress is expected slow. It added that the Irish market is showing signs of levelling off in good locations, but prices have fallen further in secondary locations.
"In both markets the directors believe working capital constraints impeded a higher level of sales achieved in recent months. Our output in 2010 will, therefore, be lower than earlier expectations," the company said.
The group completed 49 private housing units in Ireland in the first half of 2010 versus 64 in the first half of 2009.
In 2010 a loss of €0.5 million has been made in its Irish business. The home building business experienced lower volumes snd lower prices and recorded a loss of €2.3 million. Losses in both divisions were offset by a €2 million reduction of overheads.
The group also completed 200 housing units in the UK in the first half of 2010 compared to 274 in the same period of 2009. Of these 107 were social homes.
The company's commercial division recorded an operating loss of €293,000, as opposed to an operating loss of €352,000 for the same period last year.
