A UK-based building firm controlled by the Bailey brothers last year recorded losses of £5.5m (€7.6m).
According to new accounts just filed by Bovale Ltd to Companies House in London, accumulated losses at the firm increased from £56.2m to £61.74m in the 15 months to the end of December last.
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 operations.
At the end of last December, the brothers’ UK firm had bank loans and overdrafts totalling £90.95m and according to a note attached to the accounts “the loans from Nama are secured by unlimited personal guarantees from two of the company’s directors.
"M.F Bailey and T.G Bailey, and by fixed legal charges over the assets required with the funds advanced and a floating charge over all of the company’s assets”.
Documents lodged earlier this month show Tom Bailey has resigned from the UK firm.
Auditors for the firm, KPMG state that Bovale Ltd’s directors are in discussions with Nama with a view to finalising a business plan and put in place longer-term facilities.
The auditors state: “While progress has been made during the period, the outcome of these discussions represents a material uncertaint.” .
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