Bovale in talks with Nama

The building firm established by the Bailey brothers remains in discussions with the National Asset Management Agency (Nama) over finalising a business plan.

That is according to an auditor’s report just filed by Bovale Developments with the Companies Office.

Last year, Michael and Tom Bailey resigned as directors of their Irish firm Bovale Developments after they were disqualified for seven years from acting as directors when the High Court found them guilty of “particularly serious” misconduct in the conduct of the affairs of their Irish firm.

Bovale Developments is unlimited and is not required to file detailed annual accounts and is required only to lodge an auditor’s report.

The four-page report drawn up by auditors, KPMG states that the directors are in discussions with Nama with a view to finalising a business plan and put in place longer-term facilities.

The note states: “While progress has been made during the year, the outcome of these discussions represents a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”

It adds: “The directors are confident that discussions with Nama will be satisfactorily concluded.

"On this basis, the directors are satisfied that the financial statements should be concerned on the going concern basis.”

Separately, recently filed accounts confirm that losses continued to mount at the UK building firm established by the Bailey brothers.

It recorded losses of £5.5m (€7.6m) last year.