Westpark business park gets massive debt writedown

The firm behind the €65m Westpark business park in Shannon has sealed a bank deal that significantly reduces the €38.5m it owed in bank loans.

This is confirmed in new accounts just lodged by Westpark Shannon Ltd that show profits in 2013 increased by over €200,000.

Westpark Shannon Ltd is led by former chairman of Shannon Airport Brian O’Connell and the business park’s clients include aviation giant Gecas, Symantec, Pepper, Aercap and DHL.

Westpark Shannon had owed €38.59m in loans to Danske Bank.

The firm had previously revealed that Danske Bank was in negotiations with the company and its fellow group company regarding settlement of loans at a discounted rate following the bank’s decision to withdraw from the commercial sector here.

Now, the new accounts for 2013 state in a post-balance sheet event “the directors have successfully concluded negotiations with an alternative finance provider to refinance the entire existing Danske bank loan arrangement with medium term finance at a significantly reduced loan mount”.

The accounts show Westpark Shannon’s accumulated profits increased from €1.417m to €1.62m with the company’s shareholder funds increasing from €19.1m to €19.3m.

The accounts also confirm that a legal action between Shannon Development and Westpark has been resolved.

A joint venture was agreed between Westpark and Shannon Development (renamed Shannon Commercial Properties) in January 2005 for the development of the park in the Shannon Free Zone and the joint venture entitled Shannon Development to a fixed return on specific income accruing from the development from Westpark Shannon.