Bovale still in talks with Nama on business plan

Irish property developer Bovale Developments, founded by brothers Michael and Tom Bailey, remains in talks with the National Asset Management Agency about agreeing a business plan and securing long-term financing facilities, according to a document filed with the Companies Office.

An auditor's report filed for Bovale by KPMG includes a note about its status as a going concern. "The company has outstanding bank loans repayable on demand," the auditors state. "The directors are in discussions with Nama with a view to agreeing a final business plan and putting in place longer-term facilities. The outcome of these discussions represents a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern."

Bovale’s loans were transferred to Nama in 2010. Last December Michael and Tom Bailey were disqualified from acting as company directors for seven years after the High Court found they were guilty of “particularly serious” misconduct and fraud. In 2006, the brothers paid the Revenue Commissioners €22.17 million in tax and penalties.