Burkeway in Anglo talks over €45m loan

BURKEWAY CONSTRUCTION, the company controlled by Galway developer Michael Burke, is in negotiations with Anglo Irish Bank about a €45 million loan which matures this year. Accounts for Burkeway for the 20 months ended August 2009 show that the company sustained a pretax loss of €1.7 million during the period, bringing its accumulated losses to just under €16.7 million.

The company has an excess of liabilities over assets of €16. 7 million, and owed trade creditors €1.7 million due for repayment within one year at the balance sheet date. Turnover was €14.4 million during the period.

In addition, the company is owed €27.7 million by subsidiary company Burkeway Sandyford.

Director Michael Burke is owed €10.4 million by the company on a personal basis through a director’s loan. The accounts state that the directors will not seek the repayment of this loan in priority to bank or third-party creditors.

The auditors’ report to the accounts state that the financial statements were prepared on a going-concern basis and that “material concern” existed which may cast significant doubts about the company’s ability to continue as a going concern.

A disclaimer is attached to the audit due to the company’s difficulty in realising the carrying value of its assets because of economic uncertainties.

Burkeway is involved in the construction of residential, and some commercial, properties in Galway and Dublin. Its projects include Rivergrove in Oranmore, Co Galway and Pointe Boise in Salthill. Its Dublin projects include the Time Place development near the Beacon Quarter in Sandyford, and the Brighton Square development in Foxrock.

According to the company’s accounts, Mr Burke owns the site in Foxrock personally. He is also involved with a residential property company in Chicago and Forster Court Hotel in Galway.

The notes to the accounts state that the directors consider that future funding will be available to complete projects and that the “realisation of the completed properties may be achieved over an extended period”. Burkeway Construction could not be contacted for comment yesterday.