Firm owned by Bailey's son is relying on bank help to survive
Published 02/07/2010 | 05:00
A PROPERTY company owned by the son of tax-defaulter Michael Bailey has been provided with personal guarantees of more than €350,000 and has admitted it is dependent on support from its banks to continue trading.
Bailey New Homes, the construction vehicle of Mr Bailey's son Micheal Emmet Bailey, racked up losses of more than €300,000 in 2008, according to accounts just filed with the Companies' Office.
The documents show the house-building firm had €10.7m of long-term bank debt on its balance sheet at the end of 2008, as well as other creditors of close to €900,000.
The borrowings were backed by a charge in favour of Anglo Irish Bank over the Bailey New Home's 0.33-acre site with 17 completed apartments in Malahide, north Co Dublin.
Anglo also has a personal guarantee from Michael Emmet Bailey supported by a legal charge over a separate 0.11 acre site in Swords, north Co Dublin, and an "assignment over his interest in a private fund".
Bank of Ireland, meanwhile, holds a €350,000 personal guarantee from Michael Emmet Bailey "in relation to overdraft facilities provided" to the company.
In notes to the accounts, Bailey New Homes' directors say they have a "reasonable expectation" that it has "adequate resources to continue in operational existence for the foreseeable future" since their bankers "have agreed to continue to support the company".
Bailey New Homes' auditors draw attention to the loss incurred in 2008, coupled with the "need for continued banking support", but stress that their opinion is not qualified.
Michael Bailey Snr and his brother Tom were forced to hand over €22m to the Revenue Commissioners in 2006, one of the biggest settlements ever made by a tax defaulter.