Irish Firm in €55m loan writeoff

A firm that is part of Galway businessman Gerry Barrett’s Edwards Holdings group recorded profits of €49.29m in 2013.

Figures lodged by Mr Barrett’s KH Kitty Hall Holdings Ltd show it recorded the profit after a writeoff of a €54.8m bank loan.

A note attached to the accounts states that the directors are working with Nama to agree a plan to trade out the assets until they can be

prepared for sale.

Bank loans in certain group companies were transferred to Nama in February 2010.

The writeoff contributed to the amounts owed in bank loans and overdrafts reducing from €173.1m to €125.2m in the 12 months to the end of December 2013.

The group operates the four-star Hotel Meyrick 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 €9m.

The firm recorded a profit of €1.3m in 2013 and had net liabilities of

€71.59m Separate filings for the Barrett firm that operates the Hotel Meyrick, MT Mono Trading Ltd, show that the business recorded a loss of €559,159 in 2013.

In 2013, the former jewel in Mr Barrett’s hotel portfolio, Ashford Castle, was brought out of receivership when the Red Carnation Hotels firm paid €20m for the Mayo resort.

Mr Barrett had purchased the castle and the 365 acres overlooking Lough Corrib from a group of Irish-American investors for €50m in 2008.

KH Kitty Hall Holdings has bank loans of €125.2m 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 note adds that 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”.

The note states that the directors of Edward Holdings have confirmed that, in so far as possible, all companies within the group will be

financially supported to enable each company to discharge current trading liabilities, in the normal course of business.