Boundary Capital in talks to extend €38.6m debt facility

BOUNDARY CAPITAL, the Irish listed investment group led by financier Niall McFadden, is in talks with Anglo Irish Bank to “re-arrange and extend” a €38.6 million debt facility that expired yesterday.

“The outcome of these discussions is uncertain and ongoing,” Boundary said.

This news was revealed by the company in its full-year results, which showed that Boundary made a loss of €54.4 million in 2008.

It had net liabilities at the end of December of €6 million.

The accounts show that Boundary paid €5.9 million in interest on its various loans and overdrafts in 2008. It had revenue of €31.4 million.

These poor results are the result of significant losses incurred on its investments, which include a stake in the Arnotts department store and RQB Ltd, an adviser in the origination, structuring and syndication of large-scale property developments.

In its annual report, published yesterday, the directors’ review said 2009 would be a “year of consolidation with opportunities to make further investments being limited due to lack of funding”.

“We hope to finalise discussions on the debt facility with our bankers, but there remains risk and uncertainty in this regard,” they added.

“The company may try and reduce its debt position through a share placement or a disposal of an investment or investments in the portfolio.”

In its report to shareholders, auditors Mazars said there existed “a material uncertainty which may cast significant doubt” about Boundary’s ability to continue as a going concern.

Boundary’s other investments include a 60 per cent stake in Synchrony, which has signed a deal to provide a co-located hospital on the grounds of St James’s Hospital in Dublin. It also has a share of educational publisher CJ Fallon, Prontaprint, Kall Kwik and an investment in a property in central Amsterdam.

The annual report states that €44.5 million of the losses incurred on its investments relate to unquoted companies with €6.1 million relating to businesses listed on the stock market – construction-related group Siteserv and Veris.

The annual report shows that Mr McFadden, Boundary’s executive chairman, did not receive any payment from the company in either 2008 or 2007.

Its three non-executive directors – Michael Walsh, Paddy Murphy and Eugene McCague – received €107,000 between them in fees.

Staff costs last year amounted to €10.8 million. This compared with €1.7 million in the previous financial period, which comprised just eight months of 2007 following the company’s incorporation.

Boundary employed some 141 people in 2008.