Smyth denies any link to firm that bought some of UK loans
Published 04/11/2011 | 05:00
DEVELOPER Noel Smyth has told the Irish Independent he has no connection to a company that bought some of £184m (€213.5m) worth of loans owed by his UK property company.
It follows media reports that a company called Pearsanta that acquired loans owed by Smith's Alburn Real Estate Capital CMBS could be linked to the developer.
If true such a move would give Mr Smyth power to frustrate the main lenders from enforcing their security.
Last night Noel Smyth told the Irish Independent that reports suggesting he has any connection with Pearsanta are wrong.
Alburn Real Estate Capital owns a portfolio of 45 British properties but is in default on some of its loans and is facing calls for liquidation. The properties are valued at £130m, but £184m is owed to bondholders.
A notice posted on the Irish Stock Exchange said one lender, Cooperative Bank, had sold on its loans to Alburn to a company called Pearsanta.
Pearsanta and Alburn shared the same company address, prompting speculation of a link.
Mr Smyth said the address was a coincidence. He said Alburn Real estate Capital is registered at the address of an accountancy firm that provides the same service to a large number of companies.
He said he was trying to work with lenders to maximise the value of the UK assets.