The Bailey brothers now dependent on the banks
Published 27/03/2010 | 05:00
Bovale Developments, the company controlled by Tom and Michael Bailey, needs the support of the banks to remain a going concern, its auditors have stated.
"The company's ability to continue as a going concern is dependent on the availability of continued financial support from their bankers,'' the auditors say.
The precise financial condition of Bovale is not known because it has an unlimited status, which means it doesn't have to disclose its profit and loss account or balance sheet.
"The directors believe that appropriate funding will be made available to the company to continue as a going concern,'' state the auditors.
Their opinion, issued on March 5, is not qualified.
The firm has assets which are less than its called-up share capital and, as a result, an extraordinary general meeting will be required.
Despite the downturn, Bovale is expanding and late last year announced plans to spend €135m on its Charlestown shopping complex in Finglas, Dublin.
The company, which made a settlement with the Revenue Commissioners in 2006 for more than €20m is hoping that the project can create 890 jobs.
The Bailey brothers staged something of a coup at the end of last year when the Charlestown scheme was launched during a property show in Manchester by the manager of Manchester United football club, Alex Ferguson.
Like other large developers, Bovale is likely to have some of its loans placed into NAMA.
Performing or non-performing loans worth over €5m are scheduled to go into NAMA over the next two months.