Loss-making hotel group prepares assets for sale
Galway businessman Gerry Barrett is working with NAMA to agree a plan to trade assets in his Edwards Holdings group until they can be prepared for sale.
That is according to new filings for Mr Barrett's KH Kitty Hall Holdings Ltd and they show that the firm recorded a loss of €6.28m in 2012.
The figures show that at the end of December 2012, the firm had net current liabilities of €167m. The group operates the four-star Meyrick hotel in Galway's Eyre Square. The Barrett firm that owns the hotel, MI Meyrick Ltd has written down the hotel's value from €70m to €7.8m.
Separate filings for the Barrett firm that operates the Meyrick Hotel, MT Mono Trading Ltd, show that the business recorded a profit of €507,627 in 2012 – up sharply from €5,428 profits in 2011.
Last year, the former jewel in Barrett's hotel portfolio, Ashford Castle, was brought out of receivership when the Red Carnation Hotels firm paid €20m for the Co Mayo resort. Mr Barrett bought the castle and the 365 acres overlooking Lough Corrib from a group of Irish-American investors in 2008 for €50m.
KH Kitty Hall Holdings Ltd has bank loans of €173.1m and according to a note attached to the accounts "the group submits ongoing business plans to NAMA and a memorandum of understanding has been signed. The directors are working with NAMA to agree a plan to trade out the assets until they can be prepared for sale".
The note adds that the KH Kitty Hall directors "are confident that with the terms agreed with NAMA and with ongoing restructuring of the other non-NAMA bank loans expected to be agreed, taken with the continued support of the group, it is appropriate to prepare the financial statements on a going concern basis".
A separate auditors' report lodged by Barrett's Niche Hotels, which operates the Philip Treacy-designed G Hotel in Galway, show that it recorded a loss in 2012.
Niche Hotels has unlimited status and is not required to file annual accounts.
According to the company's auditors, Deloitte & Touche, the company was in a net liability position at year end and is dependent on the continued support of NAMA and its fellow group companies to be able to continue as a going concern.