€425,000 loss for McNamara firm
Published 24/11/2011 | 05:00
A Bernard McNamara property development company recorded a loss of €425,058 last year, new figures show.
Accounts filed by Radoo Lands Ltd show the company's loss last year resulted in accumulated losses totalling €16.8m at the end of December last.
Figures show that €15.5m of the loss relates to a write-down in 2009. Documents also show Mr McNamara resigned from the company on September 26.
Mr McNamara along with fellow Radoo directors and Clare developers, Sean Lyne and Noel Connellan, had entered a deal with Clare GAA in 2008 to purchase the Cusack Park grounds as part of a plan to transform the area into a €350m shopping district. The three purchased a site adjacent to Cusack Park for an undisclosed sum to advance their plans.
Clare GAA had entered a deal to sell the 10-acre Cusack Park to the three for €86m, but the deal was scuppered in 2008 after local councillors agreed that the grounds should remain open space.
In November 2009, Mr McNamara's construction firm, Michael McNamara & Co, was placed into receivership; while in January of last year in an RTE interview Mr McNamara admitted that he was 'broke'.
Prior to the property crash, Mr Lyne and Mr Connellan spent millions of euro acquiring large tracts of zoned land around Ennis for development purposes. However, much of it was not built upon. The loss last year arose from a €415,311 impairment of a current asset. A note attached to the accounts states that the work in progress was valued at €650,000 at the end of last year.
The company had bank loans last year totalling €13.1m and they were secured by personal guarantees with Bank of Scotland of €1m plus interest by each of the directors and a floating charge over all of the assets of the company.
Company auditors Cuddihy & Company state the loss and the liabilities "indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern".