Sunday 24 June 2018

Receivership costs of Spencer Dock company soar to €6.8m

Richard Barrett and Johnny Rohan of Treasury Holdings
Richard Barrett and Johnny Rohan of Treasury Holdings

Gordon Deegan

The costs associated with the receivership of Treasury Holdings's main Spencer Dock firm have soared by more than €4m in the last six months.

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 Co Ltd on January 25, 2012, by Nama.

Now documents filed with the Companies Office show that the combined professional, management and receiver fees total €6.8m in the three and a half years to the end of July 25 last.

However, the costs associated with the receivership in the last six months outstrip the costs of the preceding three years.

The documents lodged show that chief factor behind the soaring costs was the €3.07m paid out in professional fees between January 26 and July 25 this year. However, no detail is provided on what the professional fees were spent on.

In addition, management fees from the six-month period from January to July 25 of this year total €669,720 and this is €100,000 more than the €559,050 in management fees incurred over the the prior three years. In total, management fees from the receivership amount to €1.228m.

Receiver fees of €270,731 total for the recent six month period. This is in addition to the €387,648 paid out to the receivers since January 2012 resulting in an overall total of €658,379 to EY.

In a recent written Dail response on the costs incurred in Nama receiverships, the Minister for Finance, Michael Noonan, confirmed that EY has received €4m in fees relating to 14 receiver appointments.

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.

Aggregate rental income from Spencer Dock Co Ltd's properties total €18.98m over the receivership since 2012 with the proceeds from sales totalling €14.64m.

Irish Independent

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