Nationwide loaned funds to 40 failed firms since crisis began
Published 25/02/2010 | 05:00
Irish Nationwide, the property lender and building society, has seen 40 Irish companies it funded go into liquidation or receivership, or be struck off since the financial crisis began.
The company, led by Michael Fingleton until last year, has the largest amount of failed Irish companies as a proportion of its loan book of any bank, according to an analysis by the Irish Independent. Most are building firms or property development companies.
The building society has seen 40 companies it advanced funds to go the wall or be struck off in recent years. Over 200 companies it lent millions to have been dissolved, although not all of these got into financial trouble. Based on commercial mortgages currently registered with the companies registration office, almost 7pc of the Irish Nationwide loans are advanced to companies who have collapsed or been stuck off subsequently. The figures show 641 companies registering mortgage loans from Irish Nationwide.
The level of carnage endured by client companies of Irish Nationwide suggests the impairments for the building society in 2009 could be extremely elevated, although the building society declined to comment yesterday.
It has also declined to comment on reports that a discount or "haircut'' on its NAMA loans could exceed 40pc.
Among the companies who were funded by Irish Nationwide and subsequently went into liquidation, receivership or examinership are Liam Carroll's Fabrizia Developers, John J Fleming Construction and Maryborough Construction.