Losses at Nama pair hit €200m
TWO of Irish Nationwide's top 30 big borrowers have hit financial trouble, with combined losses relating to only two companies reaching more than €200m.
Devondale Ltd, whose directors are Anthony Durkan and Geraldine Carter, has recently filed accounts to the end of December 2012 that show accumulated losses of €163m.
A note to the accounts states that the company has stock of €20.6m which required additional funding from Nama to complete. Total loans owed to Irish Nationwide (now to Nama) equal €184m.
A loan of €29.3m to Devondale to buy a site in Bird Avenue, Clonskeagh, is one of a number taken out by different borrowers from the society cited in a civil action being taken against Michael Fingleton, the former managing director of Irish Nationwide, and his board.
KPMG, the special liquidator of IBRC, is taking this action on behalf of the State.
There is no suggestion of wrongdoing by anyone involved in Devondale, and the case relates to alleged breaches of processes and procedures by the society in granting this loan.
Meanwhile, BDO London has been appointed as administrator of Gateway (Leeds) Ltd, set up by Scotfield Group to build 500 apartments in Leeds. It made a profit of £10.8m (€13m) in 2012, reducing its accumulated losses to £34m prior to administration.