McNamara's Radoo Lands posts €15.5m loss after asset write-down
A property company that embattled developer Bernard McNamara co-owns with two other Co Clare developers incurred a loss of more than €15.5m in 2009.
Accounts just filed by Ennis-based Radoo Lands Ltd show that the company recorded the €15.53m after-tax loss to the end of December 2009 following a €15.5m write-down in its current and financial assets during the year.
Documents lodged with the Companies Office show that Mr McNamara has a one-third share in the company he co-owns with two well-known Clare developers, Sean Lyne and Noel Connellan.
All three are directors of the firm, which has its registered office at the Ballymaley Business Park on Ennis's Galway Road.
Last November, Mr McNamara's main construction firm, Michael McNamara & Co was placed into receivership, while in January of last year in an RTE interview, the Lisdoonvarna native admitted that he was broke.
Before the property crash, Mr Lyne -- who also has a share in 'The Clare People' newspaper -- and Mr Connellan spent millions acquiring large tracts of zoned land around Ennis for development purposes.
However, much of it today is not built upon and remains idle.
The abridged accounts show that Radoo Lands wrote down the value of its stocks by €7.54m in 2009, while the value of its financial assets was written down by €8.1m from €8.6m to €499,184.
The write-down in the financial assets arose from the write-down in the shares of Dwellblin Construction Ltd, which is 100pc owned by Radoo Lands.
Radoo Lands had net liabilities of €16.4m at the end of 2009 and the company's auditors, Cuddihy & Company, state that the loss and the liabilities "indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern".
Radoo Lands' parent company is the Ennis-based CLS Crystal Partners Holding Company Ltd and accounts for that company, also just filed, show that it had net assets of €336,103 at the end of 2008 after recording a loss of €87,146 that year.
The accounts show the directors each have personal guarantees for €1m plus accrued interest to Bank of Scotland in relation to the bank loans.
The bank is not one of the participating banks in the NAMA process.
The accounts show that the bank loans are also secured by a floating charge over all of the assets of the company and a specific charge over the lands and premises of 13 apartments and commercial units on a site at Ennis, Co Clare.