Friday 21 July 2017

KPMG fees and expenses from Lough Erne resort work total over €770k

Then European Commission President Jose Manuel Barroso, Japanese Prime Minister Shinzo Abe, German Chancellor Angela Merkel, Russia’s President Vladimir Putin, Britain’s Prime Minister David Cameron, US President Barack Obama, French President Francois Hollande, Canadian Prime Minister Stephen Harper, Italian Prime Minister Enrico Letta and European Council President Herman Van Rumpuy arrive for the ‘family’ group photograph at the G8 at Lough Erne in 2013
Then European Commission President Jose Manuel Barroso, Japanese Prime Minister Shinzo Abe, German Chancellor Angela Merkel, Russia’s President Vladimir Putin, Britain’s Prime Minister David Cameron, US President Barack Obama, French President Francois Hollande, Canadian Prime Minister Stephen Harper, Italian Prime Minister Enrico Letta and European Council President Herman Van Rumpuy arrive for the ‘family’ group photograph at the G8 at Lough Erne in 2013

Gordon Deegan

KPMG was paid fees and expenses of more than €770,000 for the administration of the five-star Lough Erne resort, new documents show.

The resort was put into administration in 2011 following a Belfast High Court application by Bank of Scotland and was sold to a group of US investors headed by financier Michael Saliba in 2015.

The KPMG administrators, John Hansen and Stuart Irwin in their final report lodged with Companies House in the UK concerning the administration, state that their fees total £648,562 (€762,000) along with expenses of £8,285 (€9,738).

They state that fees for the total time incurred by the Joint Administrators and staff amounted to £789,430 (€928,948m).

After the £8.26m (€9.7m) sale, the administrators immediately paid the Bank of Scotland £5m (€5.8m) from the sale - well short of the £26.4m (€31m) owed to the bank when the business went into administration.

On July 29, 2015, Bank of Scotland sold the debts to Dublin-registered property firm, Feniton Property Finance Ltd.

The five-star, 600-acre property sits on its own peninsula between the shorelines of Lough Erne and Castle Hume Lough, close to Enniskillen.

Businessman Jim Treacy developed the combined hotel and golf course with the aid of a £26.4m (€31m) loan from Bank of Scotland. The business fell into financial difficulty following the crash.

In an interview this week, general manager at the resort William Kirby said the resort saw growth year-on-year in 2016.

"We have seen a healthy up-turn each month. All trends are pointing north. Visitor numbers are up. The upturn of wedding business is good," he said. The administrators' figures showed that while the Bank of Scotland had received a fraction of what it was owed, unsecured creditors owed £3.5m (€4.1m) had been left empty-handed. Total costs directly attributable to the sale were £2m. And €417,203 (€490,495) was incurred in legal fees by the firm under administration, while selling agent fees were £103,750 (€121,976).

The average hourly rate incurred by KPMG partners, directors/managers, senior and other staff was £230.79 (€271) for the realisation of the asset.

The total number of hours - across all headings including administration and planning along with trading - amounted to 4,493 hours. The partners' chargeable hours amounted to £218,182 (€256,507). Chargeable hours for directors/managers totalled £457,094 (€537,385).

Irish Independent

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