McInerney property valuations to be given to three banks
Published 05/11/2010 | 05:00
A HIGH Court judge yesterday directed that three banks opposed to a rescue scheme for McInerney building group should be given information about valuations on its properties.
Mr Justice Frank Clarke directed the valuations, carried out at the request of examiner to the group William O'Riordan be released to the banks, which are owed more than €114m.
The material outlines valuations put on McInerney properties by auctioneers Lisney. Those properties form part of the proposed survival scheme aimed at allowing the company exit examinership and continue to trade as a going concern.
The syndicate comprises Bank of Ireland, KBC and Anglo Irish Bank. They had sought the material amid concerns it has over the group's proposed survival process.
The judge also directed that replies from the examiner addressing matters raised by the judge when the company initially applied for the protection of the courts from its creditors should also be furnished to the banks.
Mr Justice Clarke, who had previously been provided with the information by the examiner, was not directing a letter sent to the examiner by solicitors for the investor, Oaktree Capital, be furnished to the banks.
Oaktree, an American private equity house, is in negotiations with the examiner to take a stake for €40m in the group, which has businesses in the Republic and in England. Oaktree has also said it will invest at least €10m in the Irish operation as part of a rescue plan.
The judge expressed his concern about "shadow boxing" between the sides involved in the examinership which would make it more complicated.
In a situation where time was of the essence, the court would not be in a position to decided if it can approve any scheme to ensure the group's survival before Christmas, he said.
The judge also continued court protection until today when the matter returns before the court.
Five McInerney companies have been under High Court protection from creditors since late August.