A CONSTRUCTION company director carried on trading after running up debts of £117,000.

But Damien Francis McSwiggan has now promised not to get involved with company management again before June 2006.

McSwiggan, 35, of Cranberry Close, Darwen, sent written confirmation of his undertaking to the Insolvency Service in relation to his conduct as a director of Reinforced Concrete Design Limited. The company, which carried out business from premises at Unit H, Whitehall Street, Darwen, was placed into compulsory liquidation on June 20, 2002.

On May 30, 2001, when the company had ceased trading, Mr McSwiggan allowed it to make transactions to the detriment of creditors and to his benefit and the benefit of the company's other director, Niall Peter Murphy. They made £10,000 of which Mr McSwiggan received £5,000.

This was at a time when £56,083 was outstanding to both trade creditors and Crown Departments who remained unpaid in the liquidation.

An official acceptance of the undertaking, on January 23, 2004, will now prevent Mr McSwiggan from being a director of a company or, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for two and a half years.

His former partner Mr Murphy, 30, of Viscount Avenue, Lower Darwen, gave an undertaking not to act as a company director for two and a half years on December 17, 2003.

The Insolvency Service, on behalf of the Secretary of State for Trade and Industry, has responsibility for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future.

By not disputing the facts and settling the details in writing with the Insolvency Service, Mr McSwiggan and Mr Murphy avoided having to wait for court proceedings.