McINERNEY HOLDINGS managing director Barry O’Connor looks set to bid for the ailing housebuilder’s Spanish business, as part of a restructuring designed to tackle its financial woes.
The group owes its banks more than €240 million, and has been attempting to negotiate new terms for these debts since the middle of last year. It recently contracted Goldman Sachs to explore possible restructuring options, including raising capital from new and existing shareholders.
Yesterday, the group said Mr O’Connor – who has a 5.1 per cent stake in the company – had asked the board to be allowed to step aside from his post, as he is interested in buying its Spanish businesses, worth €34.5 million, as part of its restructuring.
McInerney said it had agreed to the request. Finance director Enda Cunningham has taken over full responsibility for the group’s businesses in Ireland, Britain and Spain, and said those management changes would take immediate effect. Mr O’Connor was not available to comment.
McInerney’s Spanish operations include a time-share business, the Alanda Club, which it manages and from which it collects rents. It has 32 properties for sale across two developments: Los Flamingos, Benahavis and El Cortesin, Casares.
It is seeking planning permission for a 100-hectare site at Sotogrande and a seven-hectare site at Santana, Mijas. The properties are in tourist destinations and the businesses are focused on this market.
In contrast, its Irish and British operations are focused on building new homes for first-time buyers.
Its Spanish interests lost €155,000 on a turnover of €6.6 million in 2009. In 2008 it lost €5.1 million on sales of €8.2 million.
McInerney’s balance sheet for the end of 2009 places a net worth on its Spanish assets of €34.5 million, with landbanks and developments accounting for €27 million. The group wrote €4.1 million off the properties’ value in 2009.
McInerney was one of a number of companies in which the Quinn Group invested – holding almost 5 per cent of the company at one stage – and lost heavily on it.
