Barrett agrees Edwards assets plan with Nama

Galway investor Gerry Barrett is working with Nama to agree a plan to trade out assets in his Edwards Holdings group until they can be prepared for sale.

That is according to new filings for Mr Barrett’s KH Kitty Hall Holdings Ltd, which show that the firm recorded a loss of €6.28m in 2012. At the end of December 2012, the firm had net current liabilities of €167m.

The group operates the four-star Meyrick hotel in Galway’s Eyre Square. The Barrett firm that owns the hotel, Ml Meyrick Ltd, has written down the value of the hotel from €70m to €7.8m.

Last year, the former jewel in Barrett’s hotel portfolio, Ashford Castle, Co Mayo, was bought out of receivership when Red Carnation Hotels paid €20m for it. Mr Barrett bought the castle and the 365 acres overlooking Lough Corrib from Irish-American investors in 2008 for €50m.

KH Kitty Hall Holdings Ltd has bank loans of €173.1m and — according to a note attached to the accounts — “the group submits ongoing business plans to Nama and a memorandum of understanding has been signed. The directors are working with Nama to agree a plan to trade out the assets until they can be prepared for sale”.

The KH Kitty Hall directors “are confident that with the terms agreed with Nama, and with the ongoing restructuring of the other non-Nama bank loans expected to be agreed, taken with the continued support of the group, it is appropriate to prepare the financial statements on a going concern basis”.

A separate auditor’s report lodged by Barrett’s Niche Hotels that operates the Philip Treacy-designed G Hotel in Galway show it recorded a loss in 2012.

According to the company’s auditors, Deloitte & Touche, the company was in a net liability position at year end and is dependent on Nama support and its fellow group companies.