We have more evidence today of the ad-hoc way in which NAMA is treating its developers with the accounts of a Donegal property company, McGettigan Construction Limited whose accounts for the year ended October 2011, were published in February 2013 and filed with the Company Registration Office last week. Like most developers, McGettigan has a pretty unhealthy balance sheet which is insolvent to the tune of €11.5m, and it turned in a loss of €1.8m in 2011. There are loans outstanding of €25m. The auditors, Donaldson and Thompson of (London)Derry note the difficulties in ascribing valuations to property stock.
McGettigan has loans from NAMA and a non-NAMA bank, and although it notes “agreement in principle” has been reached with the non-NAMA bank, the accounts state “the company awaits approval from NAMA before entering into formal agreement”. Like many other developers, McGettigan is a developer which is living month-to-month under NAMA’s auspices not knowing what support will be there in the short to medium term.
The abridged accounts don’t show us very much on director rewards though Brendan McGettigan was provided with a €66,130 “interest-free” loan during the year.