A LARGE chunk of Wexford Independent TD Mick Wallace’s business empire is likely to be put up for sale shortly after ACC Bank appointed a receiver to three of his main assets.
With the appointment of receiver Declan Taite of FGS, Mr Wallace has lost control of his flagship property in the Italian Quarter on Dublin’s Ormond Quay, as well as an apartment complex near Croke Park and development land in Rathgar.
The move could presage an eventual move by the bank to have Mr Wallace declared bankrupt or to make a court application to “garnish” (seize) his Dáil salary. He has given the four banks to which he owes money substantial personal guarantees and could become liable if the loans are not repaid in full.
However, legal experts say bankruptcy is highly unlikely as the TD has few assets and the process would incur costs for the bank.
ACC’s move will be watched closely by AIB, Royal Bank of Scotland and Ulster Bank, who are also owed money by the Co Wexford developer. Mr Wallace owes almost €20 million to ACC and has total borrowings of more than €40 million.
He responded stoically to the news but conceded last night that he had lost ownership of the three properties. “I’ve lost a lot of properties that I built up with a lot of pride but such is life,” he said.
The appointment of a receiver to the three properties controlled by his main company, MJ Wallace Ltd, was announced in Iris Ofigiúil yesterday. Mr Wallace said ACC Bank told him last Monday that he owed €18.4 million, which they wanted repaid within 24 hours because the loans were no longer performing. The receiver was appointed the following day.
He said much of the debt was accrued interest and he had been paying 20 per cent interest on the loan since January 2009.
Since that time, he had been making the interest payments on the functioning part of the loans; however, the Rathgar site had proved problematic because it was “dead in the water”.
He said he was hopeful that another of his companies, Wallace Calcio Ltd, would continue to operate the wine bars in two of the affected properties. They employ more than 50 people.
Mr Wallace said he didn’t expect to be made bankrupt because there would be “no merit” in any of the banks doing so. “It would cost them money to do so,” he added.
