Banks in control of McInerney subsidiary

 

THE BANKS have taken control of a McInerney Homes subsidiary that is not under the High Court’s protection from its creditors.

The High Court recently appointed Billy O’Riordan of PricewaterhouseCoopers as interim examiner to a number of McInerney companies, a move that prevents creditors from enforcing debts against the group businesses involved.

The case was due for a full hearing yesterday, but was adjourned to Friday after it emerged that three banks, to which the building group owes a total of €111 million, are opposing the examiner’s appointment.

Bank of Ireland, Anglo Irish and KBC have appointed a receiver to McInerney Services, a treasury operation that owes them €40 million, but which is not included in the examinership.

The company was used to borrow money from the banks, which was used to fund some of McInerney’s operations in Britain.

The five Irish companies in interim examinership guaranteed the loan to McInerney Services, which gave the banks the right to appoint their receiver.

McInerney has lined up California-based Oaktree Capital to invest €40 million in the group.

It has been in talks with banks in Britain and Ireland, to which it owes a total of €236 million, since last year, when it breached a number of loan covenants, triggering an automatic default.

Its British operations are not involved in the examinership.

If the court finalises the appointment, an examiner will have up to 100 days to come up with a rescue plan for the company.

About €70 million of the money McInerney owes its Irish banks is due to be taken over by Nama.