€173m losses for firms controlled by Galway developer

COMPANIES CONTROLLED by Galway developer John Lally incurred losses totalling €173 million in 2009, new figures show.

According to accounts just lodged by Mr Lally’s holding firm, Lalco Holdings Ltd, former subsidiaries also had net liabilities totalling €393 million at the end of 2009.

The directors confirmed that the subsidiaries were transferred from Lalco Holdings Ltd to an unlimited Isle of Man-based company, Maplegreen Unlimited in 2008. At the end of December 2009, Lalco Holdings Ltd had accumulated losses of €42.2 million after incurring a loss of €3.5 million in 2009.

Directors state the company is unlikely to have adequate resources to continue in operational existence for the foreseeable future and to meet its obligations as they fall due.

In 2009, Mr Lally’s Fifes of Wilshire Ltd was granted planning permission for a €250 million tourism development proposed for Humewood Castle demesne in Kiltegan, Co Wicklow.

Mr Lally secured the go-ahead to transform the 19th century Gothic pile into a five-star hotel with a leisure centre and spa and part of the 450-acre estate into a resort with 89 tourist lodges, an 18-hole championship golf course and clubhouse.

However, the directors for Lalco Holdings state “due to the economic downturn, the directors of Fifes of Wilshire Ltd have decided to delay the commencement of the development”. Lalco has submitted a business plan which has been evaluated by Nama and a memorandum of understanding has been reached between Nama and the company. The directors state: “No formal commitment of financial support has been received at this time.”

The accounts confirm that Lalco’s loan facilities with Irish Nationwide were acquired by Nama on July 16th, 2010.

The directors state that the information necessary for the preparation of group financial statements cannot be obtained without disproportionate expense and undue delays. Providing the individual results for Maplegreen unlimited’s subsidiaries, they show that Sova Properties incurred losses of €62 million in 2009 with net liabilities of the same amount, while Brackville Holdings incurred a loss of €47 million with net liabilities of €127 million.