Nama-bound Ballymore pays €250k to directors
Published 07/11/2010 | 05:00
Directors of Sean Mulryan's Ballymore International Development shared €250,000 in fees last year despite the Nama-bound, debt-laden building firm's massive losses.
The five listed directors of the company include Mr Mulryan, former Irish Nationwide board member David Brophy, Monaco-based packaging tycoon Michael Smurfit, Davy stockbrokers' Brian Davy and company finance chief Brian Fagan.
Mulryan sold his Dassault Falcon 900 private jet last year, and also offloaded a number of racehorses and two helicopters. The property development outfit had a net debt of almost €890m at the end of 2009.
The company directors believed that its Anglo Irish Bank and Bank of Ireland loans would be taken over to Nama this year.
Ballymore has already presented a "comprehensive" business plan to Nama "outlining its funding requirements and the steps the group is currently taking to stabilise its financing base," according to corporate documents.
Ballymore's financial situation is precarious, with documents noting that €270m of its loans "are scheduled for renewal, refinancing or repayment during 2010".
However, Ballymore's landmark Eurovea development of shops, offices and apartments in the heart of Bratislava opened in March this year. A listing of the tenants reveals some blue-chip names, including Marks & Spencer, H&M and Tommy Hilfiger.
Davy Private clients and other investors ploughed close to €200m in to Mulryan's Ballymore International development company before the markets crashed in 2007. The money was to fund major developments in central and eastern europe.
At the time the money was being raised it was suggested that the property company would float on stockmarkets as early as 2012.
This now seems highly unlikely and existing investors may be called upon to fund the company themselves. Investors in the Ballymore International Development include listed insurance group FBD, Dublin Docklands Development chairman Niamh Brennan's extended family's investment vehicle Brennan Holdings, the Irish Public Bodies Mutual Insurance company as well as Anglo Irish Bank and Bank of Ireland clients.