Monday, January 24, 2011

McEnaney Construction goes into receivership | The Post

McEnaney Construction goes into receivership
23 January 2011 By Gavin Daly

A building firm that was rescued from examinership three years ago has been put into receivership by the National Asset Management Agency (Nama) and Ulster Bank.

McEnaney Construction, which is controlled by developer John McCann, has debts of almost €75 million.

Nama has taken over the company’s debts to Irish Nationwide and made a joint move with Ulster Bank to appoint Tom Kavanagh of Kavanagh Fennell as receiver in recent days.

The Co Louth building firm announced plans in 2006 to build the M1 Euro Park, a €200 million development on a 90-acre site outside Dundalk.

However, it ran into financial difficulties the following year, and went into examinership at the end of 2007.

McCann backed a rescue package that involved him taking a 75 per cent stake in McEnaney Construction, while Sean McEnaney, its founder, was left with a 25 per cent stake.

In 2009, the company was reported to be seeking a new investor and trying to sell off sites and investment properties.

As well as the site for theM1 Euro Park, which is still undeveloped, its assets include completed projects in Balbriggan in north Dublin and an unfinished housing development in Carrickmacross, Co Monaghan.

The latest accounts for McEnaney Construction show that it had more than €74 million in outstanding loans at the end of April 2009.

However, only a term loan from Permanent was repayable on an annual basis.’ ‘All other loans are repaid when sites or developments are sold," said the accounts.

The company valued its stocks at almost €69 million, but had a deficit of €6 million on its balance sheet at the end of the financial year.

The directors of the firm said they were confident that it would continue in business, ‘‘based on assurances made with the company’s bankers’’.

However, they warned that ‘‘the ultimate outcome is dependent on banking co-operation and on the global economic climate becoming more optimistic, resulting in profitable disposals of the company’s stock and work in progress’’.

The accounts were signed on March 18, 2010, before Nama took over the loans from Irish Nationwide.

McCann has an address in Crossmaglen, Co Armagh, but is understood to be based in Switzerland.

His main business is Castleway Developments, which is involved in property development and investment in Ireland, Britain and America.

It was set up in 2003, and claims to have a property portfolio worth €250 million.

The company’s properties include the Xerox Technology Campus in Dundalk, the Orion Business Park in Blanchardstown in Dublin and a business park in Co Antrim.

It also owns the Killin Park Golf Club in Dundalk and a business park in Philadelphia in America.

A year ago, Bank of Ireland appointed a receiver to McCann’s Broadway Capital, which controlled the €80 million Ropewalk Shopping Centre In Warwickshire.

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