Banks keep Joe O'Reilly firm going, say auditors
Support from the banks is allowing one of developer Joe O'Reilly's companies, which has unlimited status, to operate as a "going concern", the firm's auditors have pointed out.
Mr O'Reilly, who is a key backer of the Dundrum Town Centre, is one of the largest developers in the State through Chartered Land and a major house builder through Castlethorn Construction.
BDO Simpson Xavier auditors have placed an 'emphasis of matter' note on the accounts of O'Reilly's Ramford Ltd, which is building the Grand Canal Theatre in Dublin's Docklands and was recently in court bringing proceedings against Harry Crosbie.
Ramford has unlimited status, meaning it doesn't have to file a full profit-and-loss account with the Irish Companies Registration Office. However, auditors are increasingly placing 'emphasis of matter' notes even on unlimited companies belonging to developers.
The note states: "In forming our opinion we have considered the adequacy of the disclosure note..to the financial statements concerning the company's ability to continue as a going concern, the validity of which depends on the continued support of the company's bankers''.
BDO does not in any way qualify the accounts and no adjustments are made to take account of the banks withdrawing their support.
According to company filings, many of O'Reilly's firms are backed by Anglo Irish Bank, with UK lender Barclays also providing finance -- to Ramford in particular.
Auditors last year pointed out that there was uncertainty over the precise carrying value of investment properties and sites owned by Castlethorn Construction itself.