Business Irish

Thursday 8 December 2016

Banks face £100m losses as Northern firm collapses

Published 29/03/2011 | 05:00

Anglo Irish Bank, Bank of Ireland and Allied Irish Banks are among the lenders likely to shoulder combined losses of almost £100m (€113.5m) following the collapse of a Northern property company.

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An administrator's report just filed for the company indicates that the assets of Jermon, which was controlled by pharmacist-turned-developer Peter Dolan (47), amount to £91.5m (€104m), while its total liabilities exceed £195m (€221m).

The assets include office blocks and retail outlets and also a helicopter, which has been valued at £300,000 (€341,000), and which Bank of Scotland (Ireland) has taken control of.

Jermon was placed into administration earlier this year on foot of an application by AIB, which registered a charge against a property in Poland owned by the property firm. Last May, Anglo Irish Bank appointed a fixed charge receiver over one Jermon asset and in July took possession of a Jermon asset in Scotland.

Another lender to Jermon included Bank of Scotland (Ireland), which also appointed a receiver over its secured assets owned by Jermon. The administrator of Jermon, Tom Keenan, said that AIB was owed £63m (€71.5m), while Bank of Ireland was owed £24.7m (€28m).

Mr Keenan said in a statement of affairs that has just been filed that he has control over the rental income of the properties secured by AIB and Bank of Ireland.

Those assets are currently producing rent of about £3.85m (€4.4m) per annum, he said.

"Whilst the realisations are unknown at this stage, based on the level of bank debt I feel it is unlikely I will be in a position to pay a dividend to preferential or unsecured non-preferential creditors," said Mr Keenan in his report.

Irish Independent

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