Kelly and Mulryan firm breaching loan agreements
MARKLAND, the property company controlled by developers Sean Mulryan and Paddy Kelly, has €346m of loans with Anglo Irish and Bank of Ireland, but some of the firm's loans are now in breach of loan agreements.
The company, which has properties scattered all over Ireland, Europe and the US, describes Anglo and Bank of Ireland as its "primary'' lenders, and expects these loans to go into NAMA. While the company claims all loans are being repaid, it discloses that both banks have extended repayments dates to 2012 and 2013.
The company, owned jointly by the two men, admits that breaches have occurred in some loans, although its 2008 accounts do not reveal which bank is dealing with the breaches. "The inherent breach in the LTV covenants has not impacted on the debt service of any loan nor has it resulted in any change in medium term repayment dates,'' state the accounts for Markland Holdings Ltd.
The accounts show that Anglo and Bank of Ireland have taken charges over different parts of the Markland assets. For example, Bank of Ireland has taken a charge on a shopping centre in Surry and 47 Citibank branches in the New York area. The Italian lender, Unicredit, has taken a charge on a property in the Czech Republic.
According to the accounts the Markland Holdings group had loans outstanding of €367m within one year, while €427m was outstanding over a longer period.
The company had a turnover of €32.3m, but due to exceptional items of €39m, it ended up with a retain loss of €40.7m. The company has a very large amount of investment properties, valued at €443m at the end of 2008. Despite the sharp downturn in construction, the company still boasted shareholder's funds of €95m, although this was down from €167m in the previous year.
Sean Mulryan, the largest developer in Ireland, has a bank of assets here and in the UK and central Europe.
His loans, which come from Anglo and Irish Nationwide in particular, are due to go into NAMA.