Costs linked to Spencer Dock receivership soar

The costs associated with the receivership of Treasury Holdings’s main Spencer Dock firm have risen over €4m in the last six months.

Costs linked to Spencer Dock receivership soar

David Hughes and Luke Charleton of EY were appointed as receivers to various retail units, undeveloped sites and part developed sites owned by Spencer Dock Development Co Ltd on January 25 2012 by Nama.

Documents filed with the Companies Office show that the combined professional, management, and receiver fees total €6.8m in the three and a half years to July 25.

However, costs associated with the receivership in the last six months outstrip the costs of the preceding three years.

The documents lodged show that chief factor behind the soaring costs was the €3.07m paid out in professional fees between January 26 and July 25 this year. However, no detail is provided on what the professional fees were spent on.

Management fees from the period from January to July 25 total €669,720, €100,000 more than the €559,050 in management fees incurred over the the prior three years. In total, management fees from the receivership amount to €1.228m.

The figures show that EY has had receiver fees of €270,731 in the most recent six-month period.

This is in addition to the €387,648 paid out to the receivers since January 2012 resulting in an overall total of €658,379 to EY.

Spencer Dock Development Co Ltd was placed in receivership with net liabilities totalling over €401m. Nine months after the main Spencer Dock firm was placed in receivership, the parent entity, Johnny Ronan and Richard Barrett’s Treasury Holdings, was wound up, in October 2012.

The receivership was unsuccessfully challenged in the High Court by Treasury Holdings.

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