Tuesday, March 15, 2011

Clare and Galway property firms enter receivership | The Post

Two more property development firms have gone into receivership, as banks continue their action against heavily-indebted builders, writes Gavin Daly.

ACC has appointed a receiver over Patrick Carmody Construction, a Clare-based company that borrowed €3 million from the bank in 2006 to buy a site.

Gearoid Costelloe of Grant Thornton in Limerick has been appointed receiver to the company, which was founded in 2001 in Ennis.

Patrick Carmody Construction owed more than €3million to creditors at the end of June 2009, according to its latest accounts.

The firm had assets worth less than €650,000 and was owed more than €2.8 million by debtors.

Meanwhile, AIB has put Galway-based Cuddy Development into receivership following a loan it gave to the company in 2008.

Michael Butler of Dublin accountancy firm Butler Reddy & Co is receiver to Cuddy Development.

The firm, owned by Sean and Shane Cuddy, bought a site for €2 million in 2004 and spent almost €1 million developing it.

However, in 2008, it wrote down the value of the project by €274,000. At the end of June 2008, it valued its stocks and work-in progress at €3 million and owed more than €2.6 million to creditors.

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