THE NATIONAL Asset Management Agency (Nama) has appointed receivers to a series of companies controlled by Limerick developer Robert Butler.
The national agency has appointed Michael Miland and Des Lennon of Jones Lang Lasalle as statutory receivers to 15 companies in the Robert Butler construction group.
Established 30 years by chairman Robert Butler, the group’s development portfolio includes substantial properties in the Shannon Free Zone and the National Technology Park in Limerick.
Part of the group’s property portfolio is the former Anglo Irish Bank House at Limerick’s Henry Street.
The group’s website describes itself as “one of the leading Irish commercial property development firms”.
Earlier this year, a palatial residential property built for Mr Butler at Adare sold for €1.9 million – €10 million less than its original asking price of €12 million in 2008.
The latest accounts filed by the group in May of this year showed that at the end of August 2010, 14 companies had an overall net deficit of €43.7 million.
The companies listed to have a receiver appointed include Robert Butler Holdings Ltd, Robert Butler (Investments) Ltd, Playa Investments Ltd, Mount Kennett Developments Ltd, Robert Butler Group Ltd, Robert Butler Realty Ltd, Dooradoyle BT Properties, Bluefort Properties and Millgrove Properties Ltd.
In its latest accounts for Robert Butler Group Ltd, auditors PGL from Clonskeagh, Dublin 14, provided a disclaimer on the view given in the financial statements because of the limited audit evidence available.
The auditors state: “With respect to net inter-group receivables of €20 million and provision thereon of €10.9 million, the evidence available to us regarding recovery was limited because of the financial position of the company – in view of the extent of its bank indebtedness and that of the group as a whole.
“While the directors consider the carrying amounts are reasonable to the best of their ability, due to the continuing uncertain financial and economic conditions, the availability of funding from its finance providers and the adverse impact on the company’s investments in its subsidiary companies and related inter-company debt, we were unable to obtain sufficient appropriate audit evidence, particularly regarding the valuation and recovery of inter-group receivables, by using other audit procedures.”
The largest loss among Mr Butler’s companies was recorded by Mount Kennett Developments Ltd, which sustained a loss of €14.4 million, resulting in accumulated losses of €17.7 million at the end of August 2010.
The loss mainly arose from a writedown in stocks from €13.7 million to €870,185.
A note attached to the returns made by Robert Butler Group Ltd confirms that the firm had net liabilities of €18 million.
The figures show the firm has bank loans totalling €22.3 million, and the accounts state that Mr Butler had provided a letter guaranteeing the borrower’s liability for a specified amount.
