Banks to be given valuations on McInerney properties

A HIGH Court judge has directed that three banks opposed to a rescue scheme for McInerney building group should be given information about valuations on properties of the company.

Yesterday Mr Justice Frank Clarke directed that information including independent valuations of property owned by the troubled McInerney construction group carried out at the request of examiner to the group, William O’Riordan, be released to the banking syndicate owed more than €114 million who are opposing a further extension of the examinership.

The material outlines valuations put on McInerney properties by auctioneers Lisney. Those properties form part of the proposed survival scheme aimed at allowing the company exit examinership and continue to trade as a going concern.

The syndicate comprises Bank of Ireland, KBC and Anglo Irish Bank. They had sought the material amid concerns it has over the group’s proposed survival process.

The judge also directed that replies from the examiner addressing matters raised by the judge when the company initially applied for the protection of the courts from its creditors should also be furnished to the banks.

Mr Justice Clarke, who had previously been provided with the information by the examiner, however, said he was not directing that a letter sent to the examiner by solicitors by Oaktree Capital who are proposing to invest in the group be furnished to the syndicate.

Oaktree Capital, an American private equity house, is in negotiations with the examiner to take a stake for €40m in the group, which has businesses in the Republic and in England. Oaktree has also said it will invest at least €10m in the Irish operation as part of a rescue plan.

The judge also expressed his concern about what he described as shadow boxing between the sides involved in the examinership. The judge expressed his fear that matters in this examinership could become complicated.

Should that be the case, in a situation where time was of the essence, the court would not be in a position to decided if it can approve any scheme of arrangement to ensure the group’s survival before Christmas.

The judge also continued court protection until today, when the matter returns before the court.

Five McInerney companies have been under High Court protection from creditors since late August, when Mr O’Riordan was appointed examiner