Ex-Anglo boss loses fortune in ailing McInerney
Published 22/08/2010 | 05:00
Former Anglo Irish Bank number two Willie McAteer has lost a fortune on his stake in the crippled housebuilder McInerney.
Anglo Irish lent huge sums to the company while Mr McAteer was the bank's finance director.
Shares in McInerney hit new lows last week after reports that it was considering going into examinership.
Sources close to the company described the reports as "speculative".
Mr McAteer holds 170,000 shares in the company, with his family holding another 10,400. His shares were bought in April 2003.
At the peak of the market in February 2007, his stake was worth close to €552,000.
Anglo Irish Bank is a major lender to Barry O'Connor's troubled homebuilding firm.
McInerney owes banks about €236m. It is thought that Anglo and Bank of Ireland may seek a stake in the company as part of a debt-restructuring deal.
McInerney has seen its share price collapse from a high of €3.25 down to just four cent.
Goldman Sachs was appointed to advise the company on raising new funds and the US private-equity group Oaktree has been linked with taking a stake.
Last week, it was reported that McInerney was considering applying for examinership as a means of forcing its bankers to write down their loans to the company.
Shares fell even further, valuing the company at just €8m -- down from nearly €700m three years ago.
Other shareholders who have taken a bath on McInerney shares include construction tycoon Ged Pierse, who has held 6,240 shares for more than a decade.
Businessman Greg McCambridge owns 130,000 shares (now worth €5,200) and Citroen magnate Gemma Maughan holds 164,800 shares. They were worth just €6,592 last week, compared with a value of €535,000 three years ago.