Teeing up the debt
Below par Carton House in bank talks
Published 19/02/2011 | 05:00
The company behind Carton House golf and hotel complex is in talks with banks and other funders about its financial future. The golf venue near Maynooth, Co Kildare, which has received the backing of property developer Paddy Kelly and Pierse Construction, has yet to receive commitments from the banks, but remains confident of their support, state accounts for Carton House Golf Club plc.
This firm acts as an agent for the main Carton House company, Chockablock Ltd. Chockablock Ltd owes Carton House Golf Club plc €20m, but the directors believe this money can be recovered.
According to the last accounts filed for Chockablock Ltd, the golf course was not profitable and shareholders' funds were €12.2m in deficit. Lenders to this company include Ulster Bank and Anglo Irish Bank.
Carton House has won a lot of high-profile business over recent years, including hosting Spanish football club Real Madrid in July 2009.
However, luxury golf venues all over Ireland have been having a difficult time, with even the K Club struggling despite hosting the Ryder Cup a few years ago. The company behind Jim Mansfield's Citywest complex went into liquidation a few weeks ago.
Hotels have been trying to get customers from beyond traditional markets, with Carton itself looking to drum up business from Middle-Eastern travellers.