Lalco firms incur losses of €173m

COMPANIES controlled by Galway developer John Lally incurred losses of €173 million in 2009.

Accounts lodged by his holding firm, Lalco Holdings, show their subsidiaries also had net liabilities totalling €393m at the end of December 2009.

The directors confirmed that the subsidiaries were transferred from Lalco Holdings to an Isle of Man-based company, Maplegreen Unlimited, in 2008.

At the end of December 2009, Lalco Holdings had accumulated losses of €42.2m after incurring a loss of €3.5m in 2009.

Lalco Holdings directors state that the company is unlikely to have adequate resources to continue to operate for in the foreseeable future.

In 2009, Mr Lally’s Fifes of Wilshire was granted planning permission for a €250m tourism development at Humewood Castle demesne in Kiltegan, Co Wicklow.

Mr Lally secured the go-ahead to transform the 19th century Gothic pile into a five-star hotel with a leisure centre and spa. The plans also allowed for part of the 450-acre estate to be developed into a resort with 89 tourist lodges, an 18-hole championship golf course and a clubhouse.

However, the directors for Lalco Holdings state that “due to the economic downturn, the directors of Fifes of Wilshire Ltd have decided to delay the commencement of the development”.

Lalco Holdings say the group has submitted a detailed business plan which was evaluated by NAMA and a memorandum of understanding has been reached.

The directors said: “No formal commitment of financial support has been received at this time.”

The accounts confirm that Lalco Holding’s loan facilities with Irish Nationwide were acquired by NAMA on July 16, 2010.

Providing the individual results for Maplegreen Unlimited’s subsidiaries, show that SOVA Properties incurred losses of €62m in 2009, with net liabilities of the same amount.

Brackville Holdings, incurred a loss of €47m, with net liabilities of €127m.

Devano Developments incurred €60m in losses in 2009 with net liabilities of €148m.

All three companies are engaged in property development.

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