ALMOST 100 homebuyers are to lose more than €1.5 million in deposits after the collapse of property company Laragan Developments.
The prospective buyers, who paid deposits on apartments in Santry, north Dublin, and in Carrickmines, south Dublin, were told at a creditors’ meeting yesterday they would get back only 1 per cent of their deposits. They had put down €15,000 or €20,000 for the apartments.
The company has been placed in examinership, and under the examiner’s proposals, depositors will receive €150 or €200 each.
The deposits for Milner’s Square, Santry, and Carrickmines Green, Carrickmines, were paid over two years ago and so are not protected by the Homebond insurance scheme, which guarantees deposits for 24 months. Both developments are partially built with some apartments occupied.
Examiner Paul McCann, of Grant Thornton, was appointed by the High Court to produce a proposal to deal with the creditors of Laragan Development Ltd, part of the Hanly Group, so that it can continue to operate. In his proposal he said there would be a substantial delay in the completion of both developments and depositors would be allowed to exit their contracts.
He noted the 95 individuals or couples who had put deposits on the properties would “suffer an immediate impairment”, but they would also receive a “substantial benefit” as they would be released from their contracts and could acquire alternative properties at a “substantial discount” in the current market.
Angry depositors who attended the meeting rejected the proposal but their votes are likely to be outweighed by other creditors. They pledged to fight the company through the courts.
Cathal Brennan said many people were unable to attend because of short notification. “I would rather chase them through the courts than sign up to this,” he said.
“Some people who put down deposits are now unemployed, €15,000 is a lifetime of saving to them.”
Ita O’Brien attended the meeting to represent her daughter, who could not get time off work. “She is devastated over this,” Ms O’Brien said.
“She worked hard to save for that deposit and now it’s gone. The whole thing is a whitewash from beginning to end.”
Stephen Daly, who was buying a property with his wife, said if the company was able to get away with not returning the deposits there would be no protection for ordinary people.
“We have done nothing wrong,” he said.
Austin and Martina Grogan from Skerries said the proposal was totally immoral.
A spokesman for Laragan Developments said it would be inappropriate for the company to make any comment that would prejudice their position in terms of the examinership process.
