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Liquidator set for Galway companies with €20m debts
A liquidator is set to be appointed to four development companies owned by a Galway businessman, which have estimated combined debts of more than €20 million.
Creditors’ meetings will be held in Dublin next Monday for Noel Burke Developments, NB Property Developments, BOC Construction and Fitzwilton Hotel Waterford, all of which are owned by Noel Burke from Taylor’s Hill.
According to the most recent accounts filed with the Companies Registration Office for the year-ended 2011, the companies had combined debts of more than €20m.
Noel Burke Developments Ltd (NBD) owed creditors €17.1 million, which resulted in a deficiency in funds of just over €14m.
NBD is the parent company of NB Property Developments, which had debtors owing €8.3m and owed creditors €8.3m, leaving funds of €194,000. A note on the accounts said Mr Burke was satisfied the funds were fully recoverable from the debtors.
NBD is also the parent of Fitzwilton Hotel Waterford (in receivership), which showed debts of €3.2m – the majority of this was owed to sister company NB Property Developments. The company also had a deficit in funds of almost €2.7m.
“The company continues to be dependent on the continuing financial support of its group companies and their principal lending institutions and the directors have not been made aware of any potential cessation in their bank facilities.
“The directors are also of the view that the company will continue to receive the support of its shareholders (Noel Burke is the ultimate owner).
“The directors continue to safeguard the assets of the company for the future of the company. The directors acknowledge the difficulties facing the company in relation to future financing in the context of the economy in general, but have concluded that they have a reasonable expectation that the company will have adequate resources to continue in operation existence for the foreseeable future,” an auditor’s note on the accounts reads.
Mr Burke had hotel and retail developments in Waterford, and also purchased the former Connacht Laundry site on St Helen Street in Galway in 2006 for €30m.
Read more in today’s Connacht Sentinel.