What's in the Sunday Papers?

Jun 27, 2010
Heritage Golf Hotel and Spa
A receiver has been appointed to the Heritage Golf Hotel and Spa, in Killenard, Co Laois, one of the largest golf resorts in the country.

ACC Bank has seized control of the operating company behind the five-star hotel at the Heritage while Anglo Irish Bank has seized the championship golf course, as well as a number of houses on the 260-acre site.

The Sunday Business Post reports that ACC and Anglo became increasingly concerned about their loans to the development and appointed receivers last week.

The state-owned lender financed the Steve Ballesteros designed golf course and has installed John McStay as receiver over the course. Meanwhile, ACC Bank has appointed Kieran Wallace as receiver to Lightridge, the company which operates the hotel.

The Heritage was built and controlled by Laois developer Tom Keane and has hosted a number of national and international events. The course remains open and membership of the golf course has not been affected.

McElhinney's Department Stores

The Sunday Business Post reports that creditors of McElhinney's Department Stores, one of the country's best known retailers, have lost almost €6 million following the move to liquidate the firm.

David Van Dessel, a partner with kavanaghfennell, was appointed liquidator last week after the company suffered a significant decline in business. Creditors were told that that the company's turnover had plummeted from €80,000 to less than €30,000 a week.

According to a statement of affairs, McElhinney's Department Stores owes some €5.9 million and has realisable assets of just €38,000, leaving it unlikely that any creditor will receive a payout, according to the Sunday Business Post. Bank of Ireland is the company's largest creditor and is owed €2.9 million while staff at McElhinney's are owed €740,000.

Ballyfallon Holdings, a company related to McElhinney's, owes the retailer €1.3 million, but the liquidator is not expecting to recover any of this money as the company has no assets.

Ridge Developments

A creditors' meeting has been called for Ridge Developments, the Sunday Business Post reports. The company has worked on a number of developments in Cork, including an apartment scheme on Washington Street and the Victoria Cross student accommodation complex.

Flash Developments
Property company Flash Developments faces a court probe after evidence emerged that the company may have used deposits from buyers to finance the running of the firm, according to the Sunday Business Post.

Court documents have also revealed that the company, controlled by businessman Ciaran Maguire, may not have title over land in Cape Verde where a proposed €100 million development was due to be built.

The firm had taken deposits from more than 200 prospective buyers, but has not signed any contracts in relation to the proposed development. Documents filed by the liquidator said that the firm had appeared to finance the general running of the company from the deposits it received.

Flash Developments entered liquidation earlier this month, but Maguire insisted that all deposits were safe and that the development would go ahead as planned through another company.

Speaking in the High Court last week, Ms Justice Mary Finlay Geoghegan ordered an investigation into the company and adjourned the matter for four weeks to give the directors time to file a detailed statement of its assets and liabilities.

Eassda Ltd
The Sunday Times reports that a former Formula One world champion is one of the biggest unsecured creditors of a bust Northern Ireland development company.

Double R Racing, which is co-owned by Kimi Raikkonen, an ex-Formula One driver, is owed almost €400,000 by Eassda Ltd, which is in administrative receivership.

Eassda is one of the main development firms owned by the family of Alastair Jackson.

The firm's administrator, BDO, told unsecured creditors who are owed €1.7 million that there would be insufficient funds generated by the sale of assets for unsecured creditors to receive a dividend. The administrator is, however, working to repay some money to Ulster Bank, Bank of Ireland and Northern Bank, who are owed a total of £28.6 million.

Raikkonen won the 2007 Formula One World Drivers' Championship and set up Double R in 2004 with Steve and David Robertson.

The Sunday Business Post reports that the ten most indebted property developers in the country want up to €1.5 billion from the state to finance the completion of developments.

NAMA took over the developers' loans at the end of March and the requests were detailed in the business plans submitted by each developer. A source close to the process said that any significant change in the €1.5 billion figure is unlikely and the agency is still working on the business plans with a number of the developers.

Barry Donohue of KPMG has been appointed receiver to SCTV Digital, the Sunday Times reports. The company is the successor to the South Coast TV signal deflector company that brought a landmark case against Sir Anthony O'Reilly's Princes Holdings in the 1990s. The receiver, who was appointed by Bank of Scotland Ireland, is understood to be seeking a buyer.

Tony Boyle
Telecoms entrepreneur Tony Boyle has settled a row with Ulster Bank over a bank account containing €620,000, according to the Sunday Times. The bank had attempted to seize the money which was held under the name of Boyle's Sigma Telecommunications Group, after a subsidiary, Sigma Telecom, went into receivership.

But last week, Boyle, who backed the 3G Mobile retail chain before it collapsed earlier this ear, revealed that the row had been "resolved" since March and the account has been fully written off.


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