FORMER politician Derek Hatton says he will be the biggest loser following the collapse of his overseas property venture Morpheus Investments.

The Hale-based company, which sold property on a number of developments in Cyprus, was put into the hands of liquidators last week, owing creditors nearly £400,000.

Of this Hatton himself is owed £312,000, HM Revenue and Customs £14,000, Barclays Bank is owed a debenture of £25,000 and The Professional Group of Companies £78,333 on a rent deposit deed.

Liquidator David Platt Associates of Ashton under Lyne says the only assets are some office furniture worth around £3,000.

Today Mr Hatton blamed the current 'monumental lack of confidence' among investors for the collapse, but maintained: “Everybody who has bought an apartment or a villa through us will see it built and completed.

"Their contract is with the developer, not us, and the cranes are on site and the build is continuing - and they will be completed on schedule.”

He said a second company, Morpheus Rentals, is unaffected and will continue to manage properties bought by investors.