Mennolly Homes hopeful business plan will be accepted by NAMA
ONE of Ireland's largest housebuilders, Seamus Ross's Mennolly Homes, has said it is "hopeful'' its business plan will be accepted by NAMA, with an outcome likely within two months.
Mennolly, famous for building luxury homes at the K Club, describes itself as one of "the leading architects of the boom", but hit the headlines in recent years after claims were made against it concerning the use of the building material pyrite in parts of north Co Dublin.
The company, led by Ross and his son Seamus Jr, is unlimited and does not have to publish accounts in Ireland. However, an auditor's note prepared by Deloitte discloses information about its operations and talks with NAMA.
"The directors are hopeful that the plan submitted, or a variation thereof, will be accepted by NAMA,'' states the auditor's note.
NAMA is currently negotiating with a range of development companies and has taken its own decisions on these matters, with the banks sometimes taking a different view.
Dublin-based Mennolly is part of the Mennolly Group which has assets in Scotland, Poland and England.
The company also owns a large number of commercial assets, including the Dylan Hotel in Dublin.
Mennolly Homes is loss making, the auditor's note states, and its ability to remain a going concern hinges on the attitude of lenders, most notably NAMA.
"Further deterioration in the market conditions beyond those assumed in the company's forecasts may lead to further impairment of the carrying value of the company's property-related assets'.'
The company is also involved in a case concerning a VAT appeal and it believes it can defend itself against a Revenue assessment of monies owed under this heading.
"No provision for VAT liabilities arising from this case has been made in the financial statements,'' states the note, dated June.
Seamus Ross: founder of Mennolly Homes