Punchestown likely to show €650,000 loss in 2002

Punchestown  Racecourse is likely to return a loss of approximately €650,000 for 2002, according to informed sources.

This follows consolidated losses of €1.03 million last year for the three related companies that run the racecourse. Despite their difficulties, the companies made a dividend payment of €114,276 to a Getty family vehicle called GT Equinus.

The family, which is heir to the eponymous oil fortune, made the investment in the racecourse some years ago as part of the "passports for sale scheme", under which Irish citizenship was granted to foreign nationals making significant investments here.

Accountants at PricewaterhouseCoopers, which has recently taken over the Punchestown accounts, are understood to have raised queries about the payment of dividends to GT Equinus at a time when the Punchestown group has significant accumulated losses. GT Equinus is in dispute with the racecourse over the make up of its boards.

Earlier this week, racecourse chairman Mr Nick Bullman resigned from the boards of the Punchestown companies in a dispute with Horse Racing Ireland (HRI) over future plans for the facility.

He and the vice-chairman, Mr John Ross, who also resigned, believe the plans for the racecourse will burden it with more debt at a time when it cannot deal with the debt that it is already carrying.

The Punchestown companies are Blackhall Racing Co, Punchestown Development Co Ltd and Punchestown Enterprises Co Ltd.

The consolidated accounts for 2001 for the three companies show that up to December 30th, 2001, Bord Fáilte had put €1.9 million into the racecourse, HRI had invested €8.2 million and the Department of Agriculture, Food and Rural Development had given €11.8 million.

When further commitments are taken into account, the racecourse is set to receive approximately €30 million in public funds, according to sources.

Despite this investment, the racecourse is in grave financial difficulty. During 2001, the companies paid €303,802 in interest. Combined accumulated losses by the end of this year are expected to be €4.5 million. Mr Bullman is against a plan that would see the racecourse getting a further €3.8 million in finance from HRI because this would add to the debt burden that the companies already have difficulty carrying.

He believes the companies creditors need to accept 25 cents on the euro of their existing loans to the companies so as to reduce the debt burden from €7 million to €1.7 million.