ACC appoints receiver to assets of TD’s company

DEVELOPER and Independent TD Mick Wallace has admitted other banks may come after him after ACC appointed a receiver to a number of properties controlled by his company.

Mr Wallace has made no secret of the fact his company owes more than €40 million in total to four different banks and that the value of his assets has collapsed due to the property crash.

He acknowledged yesterday that the banks could seek to declare him bankrupt, requiring him to give up his Dáil seat, but said such a move would be “sheer badness”.

Under electoral law, undischarged bankrupts are disqualified from membership of the Dáil.

Mr Wallace was speaking after it emerged that ACC had appointed receiver Declan Taite of FGS to three of his company’s assets in Dublin: the Italian Quarter development on Ormond Quay, the Behan Square apartment complex on Russell Street and development land in Rathgar.

It is understood that ACC is owed €20m and had fixed charges over the assets in question.

All the assets were under the control of Mr Wallace’s main development company, M&J Wallace Ltd.

Mr Wallace was keen to stress that the receiver had been appointed to the assets rather than his company.

“They take over the running of their assets and they will appoint somebody to run them or sell them.

“I’ve been working with the bank to my best ability… and I was hopeful that they would keep working with me through the crisis, but they obviously don’t have an appetite for that anymore.

“They seem content to take them and flog them to the highest bidder, irrespective of the price they are going to get for them.”

Mr Wallace said that if the properties were sold, there would be a shortfall between the price they fetch and what he owes.

The bank would likely seek a judgment against him personally for the remainder of the money at that point, he admitted.

The other banks to which his company owes money are Ulster Bank, AIB and Bank of Scotland Ireland.

These banks have not moved against him so far, but the poll-topping Wexford TD admitted they might yet do so.

“It’s possible the other banks may come after me — there’s no saying what will happen,” he said.

“In order for me to be forced out of Dáil Éireann at the moment, I would have to be made bankrupt, which is a separate thing again.

“It’s possible, but I don’t expect it. There would be no merit in any of the four banks making me bankrupt. It would cost them money to make me bankrupt.

“There is no financial gain for them to do so. Banks don’t do things unless they make money out of it, and if they did try to do it, it would be out of just sheer badness.”

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