€800,000 judgment stings Belmayne developer
Published 17/12/2010 | 05:00
A struggling building firm belonging to Dublin developer Donal Caulfield, whose Belmayne estate used raunchy advertising to sell homes in the boom, has been stung with an €800,000 judgment in favour of a Kildare-based building services firm.
Nalif Mechanical Services secured the judgment against Mr Caulfield's LM Developments, one of a string of companies the developer is involved in. LM Developments went into receivership late last year, but Mr Caulfield remains a director of the business.
LM Developments was behind the Belmayne estate in north Dublin, close to Darndale and Tesco's massive Clare Hall store. Advertisements for the development caused a string of complaints when they began appearing in publications in 2007, just as the building frenzy was shuddering to an abrupt halt.
The racy adverts also adorned the hoarding surrounding the Belmayne development, but the Advertising Standards Authority of Ireland upheld a complaint against them and ordered them removed. The adverts had been conjured up by the McCann Erickson agency. The advertising hoarding was also ordered removed by Dublin City Council as it didn't have planning permission.
LM Developments went into receivership in November last year after Ulster Bank secured the appointment of Ernst & Young to the role. The bank was owed about €7m from LM Developments at the time, while the building firm had posted a pre-tax loss of over €23m in 2008. Its turnover had slumped to €55m from €128m the previous year. The company noted it had also agreed payment extensions with subcontractors and suppliers to help deal with its capital shortfall.
LM Development's parent firm is Vue Three Sixty. Accounts for that firm, for 2008, show that its turnover shrank to €21.5m from €91m, while it racked up a €16.7m loss compared to a €5.2m loss in 2007. Interest was being rolled up on its €287m in loans at the time.