Westpark firm says loans can be refinanced

The firm behind the €65m Westpark business park in the Shannon Free Zone has stated it is confident that its €38m loans with Danske Bank can be refinanced with another financial institution.

Westpark Shannon Ltd is led by former chairman of Shannon Airport, Brian O’Connell and the business park’s clients include aviation giant, GECAS, Symantec, Pepper and Piercom.

New accounts just lodged by Westpark Shannon Ltd with the Companies Office show that the firm returned to profit in 2012 with profits of €18,064 following a loss of €199,635 in 2011.

The accounts reveal that Westpark Shannon owes €38.59m in loans to Danske Bank.

A note attached to the accounts states: “Danske Bank have made a strategic decision to withdraw from the Irish commercial market and hence are in negotiations with the company and its fellow group company regarding settlement of loans at a discounted rate.”

“The company is in negotiations with some financial institutions in order to decide its preferred institution to refinance the loans.”

The note continues: “Until these matters are finalised, there remains a material uncertainty which may cast significant doubt upon the company’s ability to continue as a going concern and therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business.

The note adds: “However, the directors are satisfied that the refinancing of the loans will be completed on terms acceptable to the company and the bank, and taken with group support and the cash flow projections, the directors have formed the view that it is appropriate to prepare the financial statements on a going concern basis.”

The Westpark campus was part of a joint venture between semi-state, Shannon Development and Westpark Shannon.

A joint venture was agreed between the two parties on January 2005 for the development of the park in the Shannon Free Zone and a note attached to the accounts states that the joint venture “entitled Shannon Development to a fixed return on specific income accruing from the development from Westpark Shannon”.

The note states that arising from the agreement, “legal action has been undertaken by Shannon Development against Westpark Shannon which will be fully contested”.

The accounts show that Westpark Shannon’s accumulated profits increased from €1.4m to €1.41m with the company’s shareholder funds increasing from €19.13m to €19.14m.

The firm valued its tangible assets at €63.1m following the directors’ valuing the company’s properties at December 31, 2012.