Business Irish

Thursday 22 March 2018

Three banks realise €4.8m from Wallace firm's crash

Dáil deputy Mick Wallace
Dáil deputy Mick Wallace

Gordon Deegan

Three different banks have now received almost €5m from appointing receivers to the assets formerly owned by Deputy Mick Wallace's main building firm.

This follows new documentation lodged with the Companies Office showing that ACC Bank, Bank of Scotland (Ireland) and AIB have received a combined €4.8m to date from the receivership of assets formerly owned by M&J Wallace Ltd. The first bank to move against the firm was ACC Bank.

It appointed receiver Declan Taite to Wallace properties in May 2011. It is understood that Mr Wallace's firm owed ACC around €20m. The Wexford deputy has admitted that he owed €40m to various banks.

Now, new documents show that ACC Bank has to date received €2.65m from the sale and rent of M&J Wallace Ltd properties.

The bank's decision to wait for the Dublin property market to recover and not carry out a firesale of the Wallace properties after taking possession of the assets in 2011 has paid dividends.

This follows documents showing that the firm's development land asset at Rathgar in Dublin was valued at €1m in 2011 with Mr Taite realising €2.24m from the sale of the Garville Road site at Rathgar on August 26, 2015.

To the end of May 16 this year, Mr Taite had also received €1.8m in rental income from Wallace properties showing that all receipts to date total €3.8m professional and legal fees arising from the receivership total €353,626 with an additional €137,130 paid out in management fees. The remaining assets in ACC receivership have been valued, at the date of taking possession, at €3m.

Tom Kavanagh of Deloitte was appointed by Bank of Scotland (Ireland) as receiver to other assets owned by M&J Wallace Ltd in September 2013.

Now, new documents filed by Mr Kavanagh with the CRO show that Bank of Scotland (Ireland) Ltd has received €977,134 from the €1m in receipts received by Mr Kavanagh.

Separate documents lodged by a third receiver, Gerry McInerney, show that AIB has received €1.19m from the receivership of a number of M&J Wallace assets.

Irish Independent

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