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Gresham owners cut loss to €6.6m

The company behind Dublin's Gresham Hotel and the Metropole Hotel in Cork reduced its losses to €6.6m in 2009 from almost €40m the previous year, according to accounts filed with the Companies Registration Office.

Loans backing a 2004 takeover of the business are due to be transferred to NAMA, the accounts show.

The company, Precinct Investments, managed to generate an operating profit in 2009, but huge debts mean the company remains dependent on the support of creditors including NAMA to continue as a going concern, according to the accounts signed off by directors on January 12.

Precinct owed €121m to banks as well as a €27m shareholder loan at the end of 2009.

The accounts show that the debt burden fell by €37m after Precinct Investments sold its Park Inn in London last year.

Precinct's bank loans are repayable on demand, according to a note submitted with the accounts. The company has been advised by its lenders, Anglo Irish bank and Bank of Ireland, that the loans are due to be transferred to NAMA. Precinct is owned by builder Bryan Cullen.

Irish Independent