Three banks retrieve €5.7m from Mick Wallace firm

Three banks have now retrieved almost €5.7m after appointing receivers to the assets formerly owned by TD Mick Wallace’s main building firm.

This follows new documentation lodged with the Companies Office showing that ACC Bank, Bank of Scotland (Ireland), and AIB have received a combined €5.68m to date from the receivership of assets formerly owned by M&J Wallace Ltd.

The new documentation shows that AIB’s appointed receiver, Gerry McInerney, distributed a further €410,000 to the State-owned bank as a result of a property sale realising €394,385 and rental income of €31,980. The documentation confirms that Allsop oversaw the sale, which took place on September 28 last year.

The latest distribution from Mr McInerney brings to €1.6m the bank has received from the receivership of the Wallace firm. In previous six-month periods, Mr McInerney had distributed €150,000, €303,000, €250,000, and €490,000 to the bank.

In 2014, AIB absorbed a major loss on the €4m it leant to Mr Wallace to purchase a site in Dublin.

The first bank to move against the firm was ACC, which appointed Declan Taite to Wallace properties in May 2011. It is understood Mr Wallace’s firm owed ACC around €20m. The Wexford deputy has admitted that he owed €40m to various banks.

The bank has received €3m from the €3.39m in sale and rent of properties formerly owned by Mr Wallace’s main building firm.

In 2011, Mr Taite was appointed as receiver to company assets at the Italian Quarter on Ormond Quay; the Behan Square apartment complex on Russell St, near Croke Park; and over development land in Rathgar.

The bank’s decision to wait for the Dublin property market to recover and not carry out a firesale of the Wallace properties after taking possession of the assets in 2011 has paid dividends. The most recent receiver’s extract lodged by Mr Taite show that legal and professional fees now total €375,273 from the receivership.

Mr Taite realised €2.24m from the sale of the Garville Rd site at Rathgar in August in 2015, while the amount of rent received from M&J Wallace Ltd’s properties is €1.76m.

In the High Court last December, Mr Wallace was forced into bankruptcy by Cerberus, which filed a petition after obtaining a judgment against him for €2m.

Tom Kavanagh of Deloitte was appointed by Bank of Scotland (Ireland) as receiver to other assets owned by M&J Wallace Ltd in September 2013.


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