Companies developing business plan for NAMA

A RANGE of companies from one of the largest building groups in the country is in the process of developing a business plan for the National Assets Management Agency (NAMA).

According to accounts just filed by Kenny Group subsidiary, Kenny Developments & Co Ltd, to the Companies Office, NAMA acquired the company’s borrowings along with those of fellow subsidiaries and related parties on December 16 last.

The directors of Galway- based Kenny Developments & Co Ltd signed off the accounts on January 18 last year.

The accounts for the house building company confirm it incurred a pre-tax loss of €2.9m in the 12 months to the end of December 2008, following a pre-tax loss of €1.1m for 2007.

The loss sustained in 2008 reduced the company’s accumulated profits to €4.4m.

The figures show the company is owed €15.9m from Kenny Group companies, including €15.4m from the Model Investment Partnership.

Kenny Developments & Co Ltd owed €13.6m at the end of 2008, with €8.8m owed to group and related undertakings and €3.2m in bank borrowings.

The directors said: “Fellow subsidiaries and related parties recently restructured their combined debt with financial institutions to ensure that all obligations are being met on a go-forward basis. The renewed facilities have been put in place subject to review by the bank in October 2011.

“NAMA is a work out vehicle, not a liquidation vehicle and can take a longer term view on borrowers and assets if it makes commercial sense to do so,” they said.

The directors say some of the key assumptions to be made in lodging the business plan with NAMA include the acceptance by NAMA of the business plan, the renewal by NAMA of the bank facilities, no further serious deterioration in the market value of the properties and sites held by the various entities and the recoverability of all debtors, both third party and related.

The directors state: “Based on the draft business plan and the key assumptions noted above, the directors are of the opinion that the company will have sufficient cash to meet its liquidity requirements for at least 12 months from the date of approval of the financial statements.”

The company’s auditors, Mazars Tierney, said: “There are a number of uncertainties which could, were the assumptions not to be achieved, cast significant doubt on the ability of the company to continue as a going concern.”

In a separate post- balance sheet event, the directors confirm that, to address the repayment of a property-based related debt, the property and associated debt were transferred to the company for €22m and €8.4m.