What's in the papers?

01 June 2009

Finance firm gets court order; Newcourt warned of insolvency action by BoI; Bank seizes G&K assets;Belgian bank seizes First Equity Group property; Receiver appointed to McKenna's €450m Kiwi project; Sky says no to Setanta appeal; The party at Renards is over just as good times fizz away; Receivers at Macreddin golf club; Owner of Irish energy group Trinergy seeks extension on $850m in loans; Sausage-maker Olhausen made 'significant' loss last year; Tom Canavan Motors is wound up with €2.8m debts

CONSTRUCTION

Slattery Precast

ACC Asset Finance has been granted a High Court injunction restraining Fermoy-based Slattery
Precast Ltd from disposing of trucks, plant and machinery worth more than €500,000, the Irish Times reports.

The court was told that almost €1m was outstanding on leasing deals for machinery. The finance firm had tried to find these assets but had failed to do so. ACC Asset Finance said it was concerned that continued depreciation in the value of the machinery may make it worthless.

Mr Justice Hedigan granted the bank an injunction directing Slattery Precast to disclose the
whereabouts of the equipment. The injunction also restrains the company from interfering with the bank’s right to repossess or dispose of the equipment.

Newcourt

Bank of Ireland has told the Newcourt Group that it will look at taking formal insolvency
proceedings against the quoted property services company in the coming weeks if it fails to reach
agreement on debt restructuring, the Sunday Business Post reports.

According to the newspaper, the bank has a €50m exposure to the group. If an agreement is not reached, the bank has told Newcourt it may appoint a receiver over certain assets or petition for liquidation.

G&K Building

G&K Building, a Co Kildare-based construction company behind the €95m Waterways development in Sallins, has had its assets seized by Bank of Ireland over unpaid debts, the Sunday Business Post reports.

The bank, which is owed €20m by the group, has appointed Keiran Wallace, a KPMG accountant as
receiver. He has taken control of the company's three major developments and will attempt to sell
them on behalf of the bank to recoup the debt.

The Waterways includes supermarkets, a medical centre, a hotel, offices, apartments and retail
units. Much of the development has already been sold or leased and the appointment of a receiver
will not affect these.

Wallace has also been appointed receiver over a residential and commercial development in
Rathangan, Co Kildare, and a greenfield site in Athlone, Co Westmeath.

First Equity Group

Belgian bank KBC has seized a British investment property from First Equity Group, the Dublin
investment firm that collapsed two months ago with significant liabilities, the Sunday Business
Post reports.

KBC has appointed Colin Fell and Mark Stupples of Kings Sturge as receivers to York Place, an
apartment block in Leicester.

More than 400 Irish investors put money into the group, which went into liquidation in March. The
company had backed projects worth more than €3 billion, including luxury apartments in Beverly
Hills and a €500m ski resort in Suffolk.

Nigel McKenna

Two companies linked to Irish property developer Nigel McKenna's €450m Kawarau Falls project in Queenstown, New Zealand, has gone into receivership, The Sunday Tribune reports.

The development includes high-end hotels and apartments. Construction started in 2005 and was due to finish in 2011.

McKenna emigrated to New Zealand in 1987 and has an estimated net worth of €500m.

LEISURE

Setanta

The financial position of Setanta, the pay-per-view sports broadcaster, is so parlous that it has been forced to ask arch-rival BskyB for a £50m advance payment on a deal whereby Sky would sell the Dublin-based company's rights packages to its subscriber base.

The Sunday Times reports that Setanta has been forced into “crunch talks” with rights holders and is asking them for a large reductions in terms.

The company's troubles arise from its failure to secure a critical mass of English Premier League fixtures from 2010, which may yet force it into administration, the newspaper reports. It has until
It has until June 15 to make a £35m payment to the Premier League. Deloitte is already advising the firm and would be appointed as administrator if required.

Renards

Flamboyant nightclub owner Robbie Fox has called time on his company, which includes Renards, the well-known Dublin nightspot. Most newspapers use the liquidation as an excuse to publish photographs of glamorous, high-profile individuals having a good time.

Fox's businesses include Renards, located in Dublin's city centre, Brown's Barn in CityWest, the Barracuda Steak & Seafood Restaurant in Bray, and Tante Zoe's in Dublin's Temple Bar. All of these are now up for sale.

Fox told the Sunday Independent:

“There is an opportunity here where I can start fresh with a blank canvas. And hopefully design
that club that I think people want. Recession is the mother of invention. In these times there
are people who will do very well because they will be innovative.”

Macreddin Golf Club

Macreddin golf club in Aughrim, Co Wicklow, has gone into receivership with debts of about €3m,
the Sunday Times reports.

Bank of Scotland sent in the receiver, Declan Taite of Farrell Grant Sparks, last Tuesday. The
Brooklodge hotel and the Macreddin Village property development, located beside the course are
not affected.

Membership of the course, which opened in July 2008, originally cost €30,000 but was slashed to
€8,000 a few months later. There is an annual subscription of €1,500 on top.

ENERGY

Trinergy

International Power, the British electricity company that paid €868m for Irish wind energy firm
Trinergy in 2007, is trying to extend up to €600m in loans, the Sunday Business Post reports.

Quoting from Bloomberg, the newspaper says the company is trying to push its loan repayments back until 2012. The energy group has operations in 20 countries and is worth more than €4bn on the London Stock Exchange.

International Power made pre-tax profits of £1 billion last year and had net debts of £6.3bn.

MANUFACTURING

Olhausen

Sausage-maker Olhausen made a “significant loss” over the past 12 months and it has entered
negotiations with its banks for additional support, the Sunday Business Post reports.

The company said its main bank was ensuring that everything was “being done to ensure the
company's survival”.
Olhausen, which employs more than 200 people, disclosed its financial situation in the Labour Court, where former employees were seeking ex gratia redundancy payments.

RETAIL

Tom Canavan Motors

Tom Canavan Motors, a Dublin Volvo and Honda dealership, has collapsed with debts of nearly
€2.8m, the Sunday Business Post reports.

The company was wound up at a creditors' meeting last week and accountant Michael McAteer was
appointed liquidator to the company, which was based at East Wall.

The company owes €710,000 to the Revenue and employees. Almost €2.1m is owed to a further 60
unsecured creditors.

www.irishtimes.com
www.sbpost.ie
www.sundaytimes.ie
www.tribune.ie
www.independent.ie

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