Uncertainty as €1.3bn Sean Mulryan loans due at end of month
Published 19/03/2010 | 05:00
Ballymore Properties Holdings, the UK-based company controlled by Sean Mulryan, had almost £1.3bn (€1.45bn) in bank facilities including loans and credit agreements that were slated to fall due at the end of this month.
Accounts just filed in the UK for Ballymore Developments notes that the facilities had to be repaid, refinanced or renewed before the end of March.
A note in the accounts states that Ballymore Developments is ultimately dependent on the ability of Ballymore Properties Holdings to continue as a going concern.
"There are a number of material uncertainties which may cast doubt on the ability of Ballymore Properties Holdings to continue as a going concern," according to a caveat in the accounts to the end of last March for Ballymore Developments, which were signed off last November.
"These matters include the ability of the group to successfully repay, refinance or renew bank facilities of £1.29bn which fall due by 31 March 2010, and £7m which falls due by 31 March 2011, and to secure continuing support from the group's bankers in the event of any breaches of covenants in a climate of deteriorating property values."
The statement added: "While the ultimate outcome of these matters cannot be assessed with certainty at this time, nevertheless, having considered the basis of preparation and the assumptions underlying the group's cashflow projections together with assessing the current status of negotiations with the group's current lenders, the directors of the group have a reasonable expectation that the group will be able to meet its liabilities as they fall due for the foreseeable future."
A spokesman for Ballymore was not available for comment yesterday and it is not known whether renegotiation of the £1.29bn of banking facilities has already been agreed.
Mr Mulryan is among one of the largest developers who'll be among the first to have loans transferredto NAMA. Ballymore owns extensive tracts of land in London's docklands area.