New accounts filed by Quinn’s Manorfield Taverns Ltd show that it sustained the loss after it wrote down the value of its Co Carlow property by €700,000 to €800,000.
Quinn owns a 50% share in the firm with Dublin developer Cosmo Flood, and the retired soccer player is on the hook for a €2m share of the €4.1m personal guarantee provided to AIB on loans.
The guarantee and mortgage debenture with AIB relates to an unfinished apartment block site at Bagnalstown, Co Carlow.
The 15 one-and-two apartment block overlooks the River Barrow in Bagnalstown while Manorfield Taverns Ltd is also a holding company for an adjoining pub.
In an interview yesterday, Mr Quinn said: “It hasn’t turned out to be a good financial investment and I have made a substantial loss on it, but you win some and lose some and you just have to get on with it.”
Quinn, who enjoyed a personal windfall from the sale of Sunderland FC, pointed out that Manorfield Taverns Ltd is a non-trading company and the loss arises from an accountancy exercise.
The accounts show that the firm has a bank loan of €4.5m while Quinn has provided a loan of an additional €1.2m.
A note attached to the accounts show that the directors believe that it is appropriate to prepare the financial statements on a going concern basis “because Mr Quinn has given a written undertaking not to seek repayment of his loan accounts for the foreseeable future”.
Mr Quinn said that the development is 90% complete and “I remain committed to it and I hope that when all the issues are addressed that it can accommodate some of Bagnalstown’s elderly people and their needs. I have always resolved to do that.”
It is understood that any future rent roll will go towards funding Mr Quinn fulfilling his personal guarantee commitments with AIB.
A note attached to the Manorfield Tavern Ltd’s accounts states that the 2012 loss and €5.3m deficiency of assets “indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern”.
The downturn in fortunes for Quinn’s property investment venture is in sharp contrast to the performance of his media firm, Niall Quinn Media Services Ltd, which recorded profits of €555,000 last year, coinciding with Quinn’s return to Sky as a football pundit.