The BBC is this afternoon reporting that Northern Ireland house builder Dunergan Developments Limited, which went into administration in July 2012, is set to cost NAMA a total of GBP 9m (€12m) with the collapse of property prices in Northern Ireland. The company owes five banks a total of GBP 24m and NAMA will be the main loser from the collapse of the company,
A schedule of creditors – extracts with NAMA loans shown below – shows that NAMA acquired a raft of AIB loans secured on properties right across Northern Ireland. Surprisingly, it seems as if NAMA decided not to acquire Bank of Ireland loans to the company – in the past NAMA has rejected certain loans because of issues with paperwork and security.
The company is owned by the McCann family – Christopher McCann, Eoin McCann, Francis McCann, Hugh McCann, Joan McCann and Michael McCann whose main company is FP McCann Limited which produces a range of manufactured products sold across the UK.
FP McCann Ltd had net assets of ~£Stg48M = ~€60M as of last January.
Lets hope AIB/NAMA has some of that for security, but I doubt it.
Shure weren’t property values going to keep rising forever.!
The corporate structure and legal entity is wonderful asset at times.
I’d be very surprised if the McCann’s were silly enough to give a parent company guarantee.