The son and wife of bankrupt developer Sean Dunne have altered plans for a proposed development in New York, forcing their company to seek renewed permission from the Landmarks Preservation Commission that oversees building work in the city's historic areas.

TJD 21, the company owned by Mr Dunne's wife Gayle Killilea Dunne and his son John Dunne, submitted revised plans for the proposed development at 74 Grand Street in the fashionable Soho area in Manhattan last month.

The plans involve moving the entrance, stairwell and lift in the five-storey apartment development to the other side of the building.

The internal changes require approval from the commission, because the building is in Soho’s protected historic area, before the city’s planners can grant the green light, paving the way for construction to begin.

John Dunne included a letter in revised plans filed by his company’s planners and engineers last month.

They said that the change was due to the stability of foundation walls on the next-door building.

Sean Dunne, who filed for bankruptcy in the US last year with debts of $942 million (€700 million), has said he is working as a paid adviser for the firm owned by Ms Killilea Dunne and her stepson.

The company has told New York planners that it expects to make a profit of $3 million on the $22 million development, selling the four apartments in the building for between $3.3 million and $7.7 million.

The project is the Dunnes’ largest development in the US since Mr Dunne and his wife moved there in 2010.

He is trying to withdraw his US bankruptcy case, saying that he cannot afford to defend a legal action by the National Asset Management Agency, a creditor, to block a discharge from his debts.

The issue will go to trial in early December.

Mr Dunne has also been adjudicated a bankrupt in the Irish courts.