Bank of Ireland hit for €1.4m in Royal Tara liquidation

Bank of Ireland took a hit of more than €1.4 million, following the closure of Royal Tara China in Mervue, the liquidator’s report shows.

According to the document filed this week with the Companies Registration Office, Royal Tara China Holdings Ltd, all creditors except the bank were paid in full. When it closed down in 2003, the directors hoped to develop 100 apartments on the five-acre site.

Two years later, the land and buildings were valued at €2.5m, and An Bord Pleanála finally granted permission for the redevelopment of the site in December 2007, as the property market was beginning to collapse.

In his filing to the CRO, liquidator Thomas Grealy said: “The company traded from 1953 to 2003. In December 2003, the decision was taken to cease manufacturing due to adverse trading over a number of years because of cheaper imports from the Far East and changing lifestyles where young people had no interest in fine china.

“All creditors except the bank were paid in full and all employees received their redundancy entitlements.

“The bank held the company’s property as security for their loans. At the time of closure, it was considered that the value of the property exceeded the loan balance.

“The bank agreed to support the development of the property. Planning permission was sought for 120 apartments. There were various difficulties and the planning process took five years.

“At that stage, property prices had collapsed and the net amount realised was €1.07m against a bank debt of approximately €2.5m.

“The only other creditors were the shareholders who provided funds to cover the interest being charged and who are also funding liquidation costs,” the filing reads.

The eventual planning permission on the site – after almost €370,000 was spent in architects’ fees – was for the renovation of Tara Hall and the construction of 10 new buildings housing apartments, offices, a gym and a crèche.