In the Swedish bad bank in the 1990s, the majority of the 800 developers and property companies whose loans were taken over were eventually bankrupted or liquidated; Securum moved against 70% of its developers, and the signs are that NAMA is going to also foreclose on a significant number, if not the majority, of its developers. In yesterday’s edition of Iris Oifigiuil we learn that NAMA has had receivers appointed to embattled Clare developer Cronan Nagle Construction Limited. On 15th October 2012 NAMA had Declan Taite and Anne O’Dwyer of RSM Farrell Grant Sparks appointed as joint statutory receivers to the company.
Cronan Nagle is owned by the Nagle family and its two directors are Cronan Nagle (59) and David Nagle (36). It is best known for the development of hi-tech low-carbon footprint estates in and around Ennis in countyClare. It has been in the financial wars for several years and is already subject to a receivership.
Remember you can see a comprehensive list of Irish foreclosure action by NAMA here and in this regularly updated spreadsheet.
“In the Swedish bad bank in the 1990s, the majority of the 800 developers and property companies whose loans were taken over were eventually bankrupted or liquidated; Securum moved against 70% of its developers.”
I have been quoting this fact on this blog for the past 2 years. The same will happen here. The big problem here as opposed to Sweden, is that we have only local developers, mainly bank funded individuals rather than substantial companies. The Private Equity Funds will hold for a maximum of 5 years. Who do they sell to?
There Are other Options
https://www.facebook.com/pages/Debtoptions/211736418893790?fref=ts
I have mentioned the Vietnamese poet Nguyen Chi Thien on another thread, but one of his poems appears appropriate for the developers response to NAMA here:
“They sank me into the ocean
Wishing me to remain in the depths.
I became a deep sea diver
And came up covered in scintillating pearls.”