Paul McGuinness has moved to liquidate his music management firm with the voluntary winding-up process expected to produce a cash pile of over €1.1m.
In November 2013, McGuinness confirmed that he was stepping down as manager of U2 after more than 30 years, when announcing the sale of his Dublin-based Principle Management to international music giant, Live Nation.
The sale of Principle Management to Live Nation was part of a reported $30m (€24.9m) deal that also included Live Nation purchasing Madonna’s entertainment company, Maverick.
Mr McGuinness remained on as chair of Principle Management, with Guy Oseary taking over U2’s day-to-day management.
However, new documents lodged with the Companies Office show that McGuinness has formally moved — along with fellow director Trevor Bowen — to wind up the firm.
The firm — now known as Evergreen Ventures Ltd — was loss-making for the fourth year in a row in fiscal 2013, with figures showing that accumulated profits deceased sharply by €1.9m.
However, the seven-page Declaration of Solvency returned to the Companies Office and signed off by Mr McGuinness and Mr Bowen, shows that the firm had €903,861 in the bank on the date of the voluntary wind-up.
The firm also had €75,501 in marketable securities and was owed €223,961 in Vat.
According to the documentation, the estimated realisable assets totalled €1.21m.
The figures show that after corporation tax of €44,927 is paid, along with €20,605 in accrued expenses and €14,282 in trade accounts, the estimated surplus after all debts are paid will be €1.13m.
Separate documents lodged with the Companies Office show that Michael Mohan of Templeogue has been appointed as liquidator.
Accounts for the final entire year in which Mr McGuinness led the company show that Principle Management Ltd’s accumulated profits decreased by 56%, from €3.38m to €1.48m, in the 12 months to the end of March 31, 2013.
The fiscal 2013 accounts show that its cash pile also took a nosedive, decreasing by 86% or €3.37m from €3.93m to €560,178.
The losses in 2013 and 2012 following pre-tax losses at Principle Management topping €1.8m in 2011 and €253,821 in 2010. The firm’s accumulated profits in 2011 stood at €5.5m.
In a radio interview around the time of the release of U2’s ‘Songs of Innocence’ on iTunes last September, Mr McGuinness said: “People forget that U2 have been the world’s champions of music for over 20 years now and while it may become routine, there’s no reason not to be very proud of it.”
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