Local building firm enters receivership - Company owes e75m

DUNDALK-based building firm McEnaney Construction has been put into receivership by the National Asset Management Agency (NAMA) and Ulster Bank.

DUNDALK-based building firm McEnaney Construction has been put into receivership by the National Asset Management Agency (NAMA) and Ulster Bank.

The company, which has a registered address at 6 Roden Place, is controlled by developer John McCann and has debts of almost e75 million.

NAMA has taken over the company's debts to Irish Nationwide and made a joint move with Ulster Bank to appoint Tom Kavanagh of Kavanagh Fennell as receiver on January 17.

The building firm announced plans in 2006 to build the M1 Euro Park, a e200 million development on a 90 acre site on the Armagh Road, outside Dundalk.

However, it ran into financial difficulties the following year and went into examinership at the end of 2007.

McCann backed a rescue package that involved him taking a 75 per cent stake in McEnaney Construction, while Sean McEnaney, its founder, was left with a 25 per cent stake.

In 2009 the company was reported to be seeking a new investor and trying to sell off sites and investment properties. As well as the site for the M1 Euro Park, which is still undeveloped, its assets include completed projects in Balbriggan, Co Dublin and an unfinished housing development in Carrickmacross, Co Monaghan.

The latest accounts for McEneaney Construction show that it had more than e74 million in outstanding loans at the end of April 2009. However, only a term loan from Permanent TSB was repayable on an annual basis. "All other loans are repaid when sites or developments are sold," said the accounts.

The company valued its stocks at almost e69 million but had a deficit of e6 million on its balance sheet at the end of the financial year.

The directors of the firm said they were confident that it would continue in business, "based on assurances made with the company's bankers."

However, they warned that "the ultimate outcome is dependent on banking co-operation and on the global economic climate becoming more optimistic, resulting in profitable disposals of the company's stock and work in progress."

The accounts were signed on March 18 2010, before NAMA took over the loans from Irish Nationwide.

John McCann has an address in Crossmaglen, Co Armagh but is understood to be based in Switzerland. His main business is Castleway Developments, which is involved in property development and investment in Ireland, Britain and America.

It was set up in 2003 and claims to have a property portfolio worth e250 million.

The company's properties include the Xerox Technology Campus in Dundalk, the Orion Business Park in Blanchardstown in Dublin and a business park in Co Antrim. It also owns the Killin Park Golf Club in Dundalk and a business park in Philadelphia, USA.

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