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Sunday 4 December 2016

Mulryan's guarantees cover just £25m of Ballymore's £1.3bn debt

Published 14/01/2011 | 05:00

BALLYMORE Properties' boss Sean Mulryan had personal guarantees covering just £25m (€29.8m) of his UK company's £1.3bn (€1.55bn) debt pile when a batch of the loans was transferred over to NAMA last summer.

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Mr Mulryan's minimal level of personal guarantees is revealed in accounts just filed by Ballymore Properties Holdings (BPH) in the UK, which also show the group repaid £437m of debt last year.

It is understood that the low-profile developer, one of the top 10 in NAMA, is likely to assume significantly greater personal responsibility for Ballymore's debt as part of a business plan to be agreed with the agency.

In a statement signed off on December 23, BPH's directors say negotiations on that seven-year business plan are "almost complete", adding that they are "confident" the plan will be approved.

The plan includes "refinancing, joint ventures and disposals of non-core assets," BPH's directors added.

The UK company claims to have already begun that process in the year to March 31, 2010, by selling off "a number of non-core assets" as well as a major London property known as Snow Hill Building 1.

Those disposals together with strong sales at Ballymore's Pan Peninsula development in London "enabled the group to repay £437m of borrowings in the financial year" and reduce its net debt by £333m.

BPH's directors say the company has secured the support of its lenders to "commence development on a number of development sites" since March 2010 and is actively progressing planning applications on other sites.

The accounts for the year-ending March 2010 also show BPH's operating losses more than doubled to £240m in the year, even though sales more than doubled to £334m.

Mr Mulryan had previously said he expected the year ended March 2009 to be the worst financially.

"The operating environment continues to be challenging and a number of assets have been impaired," BPH's directors say in a note on the latest results.

Irish Independent

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