Losses hit €40m at hotelier’s firm
Jeremiah O’Reilly & Associates Ltd has submitted a business plan to NAMA and, according to the accounts for 2010, “the ultimate disposal of the company’s property assets has been included within an overall NAMA plan submitted by company director, Jeremiah O’Reilly”.
The accounts show that the company had creditors totalling €43.5m at the end of December last and its bank loans are secured by personal guarantees from Mr O’Reilly and a fixed and floating charge over the assets of the company.
During the building boom, Kerry native, Mr O’Reilly entered a number of ventures with developer Bernard McNamara, including the redeveloped five-star Shelbourne Hotel in Dublin and the Radisson Blu hotel in Galway.
The accounts confirm Jerry O’Reilly & Associates Ltd recorded a loss of €632,604 in 2010 concerning loans written off that were advanced to a parent company. The firm had liabilities totalling €40.1m.
A note attached to the accounts states: “The company continues to be dependent on the continuing financial support of its lending institutions and the directors are currently in negotiations with NAMA regarding the ultimate disposal of the company’s property assets.
“On the basis that the agreement and implementation of this NAMA plan will take some time, the directors consider it appropriate to prepare the accounts on a going concern basis.”
Auditors for the company, O’Neill Foley, state that during the time it takes NAMA to approve and implement the business plan, the company will continue to maintain and manage the entire property portfolio included within the plan submitted by Mr O’Reilly.
O’Neill Foley state that loan facility letters have expired and debts were transferred to NAMA in 2010.
The chief factor behind the accumulated loss was the company in 2009 recording a loss of €32.1m having written down the value of property related assets and company loans.
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