Tuesday, 22 July 2008

Carrigglas company is facing liquidation

A rather bad news for Carrigglas, I'm afraid. And it's two months old news anyway, so there might be some other news I'm not aware of. Thanks to Rachel and Simon for the hints. News from The Post in Ireland. Hope things are getting better.

Carrigglas company is facing liquidation

18 May 2008

The development company behind Carrigglas Manor, the €160 million hotel and golf development in Longford, is set to go into liquidation, writes Ian Kehoe.

The directors of Thomas Kearns Developments have petitioned the High Court to wind up the company and have it placed into liquidation. The petition is due to be heard by the court early next month.

Construction work on the development has been stopped since last year, following a dispute over payments to contractors. Bowen Construction, the lead contractor on the Carrigglas Manor project, issued a letter to sub-contractors, informing them of payment issues.

The latest move by the directors of Thomas Kearns Developments has thrown the project further into doubt. It is understood that the directors of the company Tommy Kearns and his son Tom, own the development land in a personal capacity, and not through the company.

Bank of Ireland has a €35 million exposure to Carrigglas Manor, and recently asked accountancy firm Deloitte to assess the viability of the project. Kearns and his son provided the bank with personal guarantees over the capital.

The €160 million development was to include a four-star 96-bedroom hotel, spa, country club and 300 properties.

The project also includes a championship golf course designed by Retief Goosen, the South African golf star. Carrigglas was to have been financed through property sales, but suffered due to the downturn in the housing market.

Bowen Construction, has since made an €8 million bad debt provision in its accounts, arising from its involvement in Carrigglas.

Pic: Carrigglas Manor from the backyard, courtesy of Edward Lefroy (private collection)

1 comment:

Rachel said...

Thank you Icha for the post!
And thanks Simon for the information- sad news indeed.