Thursday 29 June 2017

ACC sought bailout as it wrote down debt of e383m

Joe Brennan

ACC Bank, which has been pursuing troubled developers through the courts, required another bailout from its Dutch parent last year as it wrote down €383m of bad loans.

Utrecht-based Rabobank pumped an additional €275m to shore up ACC's balance sheet in 2009, bringing the amount it has injected into its Irish unit over 24 months to €450m.

ACC's net loss for the year widened to €394m from €242m for 2008 -- contributing to a 17pc slump in Rabobank's net profit for the reporting year, to €2.3bn.

Liquidator

ACC, which succeeded yesterday in having the High Court appoint a liquidator to three insolvent companies in the Cork-based Fleming building group, blamed the collapse of the Irish property market for its dire financial figures.

Total income at the bank dropped 23pc last year to €128m as troubled developers increasingly stopped paying interest on impaired loans.

All told, ACC has written down €756m of its loan book over the past two years -- equating to about 13pc of its average loan book over the period.

ACC announced last year that it would axe 200 of its 660-strong workforce in closing 16 of its 25 branches between October and next month.

Irish Independent

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