Wednesday 21 February 2018

Spencer Dock receivership costs Nama €1.6m in fees

Johnny Ronan, Richard Barrett.
Johnny Ronan, Richard Barrett.

Gordon Deegan

NEARLY €1.6m has been paid in professional and receivers' fees from the receivership of Treasury Holdings' main Spencer Dock firm, it has emerged.

David Hughes and Luke Charleton of EY were appointed as receivers to various retail units, undeveloped sites and part-developed sites owned by Spencer Dock Development on January 25, 2012, by NAMA.

Now, documents filed with the Companies Office show that the receivers have received €277,857 to date in fees.

To date, a total of €1.59m has been paid out in fees tied to the receivership.

Finance Minister Michael Noonan recently revealed that NAMA has paid fees totalling €59.6m to receivers concerning 258 separate receiver appointments since the agency was established.

Professional

In relation to the Spencer Dock receivership, the documentation shows that a total of €1.314m has been paid out in "professional fees" over the two years from January 2012 to January of this year though no detail is provided on what the professional fees were spent on.

The receiver extract relating to the six-month period from July 25 last to January 24 of this year confirms that professional fees of €317,486 and receivers' fees of €277,857 were paid out during the period.

The Revenue Commissioners were also paid €337,166 during the most recent six-month period covered.

The receivership was unsuccessfully challenged in the High Court by Treasury Holdings and the professional fees may include legal fees as no entry for legal fees is recorded in the various documents lodged by the receivers with the Companies Office.

Spencer Dock Development Co Ltd was placed in receivership with net liabilities totalling over €401m.

Nine months after the main Spencer Dock firm was placed in receivership, the parent entity, Johnny Ronan and Richard Barrett's Treasury Holdings, was wound up in October 2012.

The four separate receiver extracts lodged by Mr Hughes and Mr Charleton show that the aggregate rental income from the firm's properties totals €9.69m with the proceeds from sales totalling €7.69m.

The firm had cash reserves of €4.87m on the appointment of Mr Hughes and Mr Charleton.

The figures show at the end of two years in receivership, the company had receipts totalling €23.489m that included the €4.87m in cash – the firm's payments in the two years to January of this year topped €20.15m.

The documents show that €7.25m has been distributed to the charge holders to company debentures dating back to 2004.

In his recent Dail response on the issue of receiverships, Mr Noonan said that receivers appointed by NAMA in Ireland control 770 residential properties and 701 commercial properties.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business