Friday 19 January 2018

CIT charged €6.2m for leaving city premises

John Mulligan

John Mulligan

A €6.2M charge was incurred by CIT Finance Ireland after the US-owned group vacated part of its premises in Blackrock, Co Dublin, last year as the parent group fought for survival and entered bankruptcy.

CIT provides vendor finance to companies such as Dell and Microsoft and SMEs, and is also the third-largest aircraft financing firm in the world. It encountered difficulty over a year ago in meeting bond repayments and notched up $5bn in losses in the previous two years. After attempts at debt restructuring, the company entered bankruptcy last November.

After the firm exited bankruptcy in December, former Merrill Lynch boss John Thain was appointed chief executive. Last week, CIT posted far stronger third-quarter profits than analysts expected as business activity increased.

The accounts for CIT Finance Ireland show a pre-tax loss of €15m last year, a significant deterioration on its €992,000 pre-tax profit a year earlier.

The accounts also note that the company planned to sublet the block it vacated in Dublin until November 2012, but the charge incurred in quitting the premises included an offset for forecast rental income.

The company employed 248 people at the end of 2009 in Ireland, down from 289 a year earlier. Wages and salaries paid by the subsidiary fell by €11m in 2009 to just under €14m.

Irish Independent

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