Gerry Gannon gave personal guarantees on debts in UK
Developer Gerry Gannon has provided personal guarantees over some of the £22.8m of debt accumulated by his UK company, new filings reveal.
The directors of Gannon Homes (UK) Ltd claim to being "confident'' their business plan submitted to NAMA will be approved. The company has debts of Stg£22.8m, backed up by charges over land, work in progress and other assets owned by the company.
"The company's borrowings are also secured by the personal guarantee and indemnity of Mr Gannon," the directors say.
The loans for the UK assets were provided to the company by Anglo Irish Bank. These are repayable on demand, but the directors say their relationship with Anglo rules this out.
"The company's relations with the bank is such that the directors are confident the bank will continue to extend facilities to complete ongoing developments financed by the bank."
The accounts for the company -- to December 2009 -- also contain an update on NAMA negotiations. "Until NAMA completes its deliberations, there remains uncertainty over the continuation of financial support to the company."
The auditors to the company say the evidence available to them is limited as the firm couldn't "provide sufficient evidence'' that future financial support would be available.
The company is sitting on a shareholder's fund in the negative to the tune of €11.2m. Accumulated losses amount to €11.2m.
The company's ultimate aim is to "trade out of current difficulties'' with the support of NAMA. Mr Gannon is a shareholder and director of Gannon Homes (UK).
He recently sold land near the K Club in Straffan, Co Kildare. It is also reported that his 50pc stake in that club is up for sale. NAMA has also got a business plan for the future of the K Club.