Property empire clears debt pile

THE family firm of former Newcastle United chairman Sir John Hall claims to have wiped out debts that once threatened to engulf the property tycoon.

The turnround at Cameron Hall Developments coincides with the dramatic return to the North-East of Sir John, 70, from retirement in Marbella. He and Cameron Hall are busy working on plans to develop a business park at Wynyard, north of Middlesbrough, creating 15,000 jobs.

The development appears to signal a change of direction for Cameron Hall, which was forced to sell properties to cut debts that peaked at more than £40m.

The latest accounts, for the year to November 2001, have just been filed, more than a year late. Operating losses were reduced from almost £85m to £16.3m, while net debt fell to £15.3m. But according to the accounts, signed off last month by KPMG, borrowings have been eliminated.

Sir John's son Douglas, who is Cameron Hall chairman, said: 'The directors have continued the strategy of reducing borrowings substantially by discreetly marketing properties rather than holding them for development. This has resulted in all the borrowings being repaid.'

The accounts show the highest paid director, believed to be Douglas, received £5.6m.

Analysts trace the company's problems to Sir John's decision to emigrate to Spain six years ago, leaving the business in the hands of his son, who has a reputation as a playboy.

Douglas was famously caught with fellow Magpies' director Freddy Shepherd on video in a Spanish brothel referring to Geordie women as 'dogs' and Newcastle team captain Alan Shearer as 'Mary Poppins'.

Despite supporters' fury, Shepherd later came back to the club as chairman, while Douglas-remains a non-executive director.

In the Cameron Hall accounts, Douglas says its investment in Newcastle United has generated a good return on capital. The club was criticised last year for paying a £4.5m dividend to shareholders despite a £3m loss.