Pierse Construction in Liquidation

[onq]

Totally agree in relation to Ruairí - a potentially great Taoiseach we never had.

As for "Inda" and the bois, Bruton is the one one I rate and he has played the "rebel" card and been defeated.

He needs to oust Inda before the next election or form his own party to move forward.

Otherwise he'll end up supporting a weak leader who in the past fortnight has gloriously shot himself in the foot in a radio interview.

Pompous and arrogant though COwan looked yesterday delivering his "do it for the country" speech, he still blows Inda away.

The trouble is FIanna Fáil are not right on this matter.

Front loading pain before the economy and jobs are showing signs of recovery is simply wrong headed.
We have a paper upturn based on the profitability of foreign multinationals located here.
The economy is not yet resilient enough, the consumer not confident enough.

After a year when the banks were caught no lending but lying, we need liquidity to restore the market and the consumer confidence and we need it before Christmas.

ONQ.

[wearnicehats]

I'm not sure what is more depressing

1. the shopfront
2. the spelling
3. the fact that this takes up newsprint
4. The fact that we care at all

if it was spraypainted on his face then I might be interested

Of course, by posting this, I have spread the malaise.

Unless. of course, Noel has shut up shop and is in the throes of opening a trattoria and all the "irish education in a portakabin" years got the better of him

Am I the only one to be offended at the cartoon on the front of today's IT? Would any other country's - supposed - primary newspaper have written - for all intents and purposes - "fucked" on their front page? It says a lot really

[onq]

Is that "TRATIORS"?

Is this not just a cunning plot by Dempsey to -

1. Get much needed TLC from people commisserating with him
2. Look like someone already "did" him to avoid getting hassled on the hustings
3. Get some insurance money in to do up the store front in time for the next election in January 2010.

Or

4. Give him his "reason" for departure from Irish politics?

ONQ.

[FunkyCoW]

Oldish news but tones of Pierse in the company spiel

http://www.irishtimes.com/newspaper/finance/2010/1116/1224283410768.html

CAVAN-BASED construction company P Elliott Co took a writedown of €43 million in property impairment and provisions against related party debt last year, pushing the company almost €30 million into the red.

Accounts just filed at the Companies Registration Office show that the company wrote off €18.5 million in intercompany debt, with an additional €22 million written off against the value of development sites, joint venture assets and investment properties.

The company posted a pretax loss of €29.2 million for the year, compared to a pretax profit of €8.8 million the previous year.

The accounts note that, while the loss “impacted negatively” on the company’s balance sheet, it did not involve any current year cash losses and was a direct consequence of the falls in property values nationally and internationally.

Turnover fell 39 per cent in the year to €180 million, compared to €293 million in 2008 the accounts show.

Elliot’s had €90 million in loans outstanding, €51 million of which was repayable within one year. The accounts state that the directors formally presented the group’s business plans to lenders in early 2010 and negotiated a renewal of its trading facilities with Ulster Bank, its main bank. It envisages the renewal of all its facilities in the “near future”. The company’s other lenders are Anglo Irish Bank, Bank of Ireland, and Bank of Scotland (Ireland).

According to the company’s filings, the group’s bank facilities are secured against property assets in Dublin, Cavan and Meath, as well as cross-guarantees from group companies.

Debtors amounted to €95 million, €65 million of which were amounts owed by related parties.

The company, which was founded in 1942, employed 263 people last year, compared to an average of 340 in 2008.

Directors’ loans totalled €3.5 million for the year, €2.6 million of which was loaned by Noel Elliott jnr.

The accounts state that the company construction division had made “very good progress in 2009”. The company secured a number of public contracts, while rental income from its investment properties remained “very stable”, according to the company.

[PVC King]

Not convinced they will go; they have some nice work in London at the mo

[FunkyCoW]

I think they are a possibility. Their work in London isn't enough to service their debts alone and apart from the NHS hospital in Enniskillen (a JV) they haven't much in the way of large projects here.

Another contractor/developer I feel may possibly go in 2011 is JJ Rhatigan. Their flagship project, Heuston South Quarter, (Rhatigan Commercial Developments Limited) a half built and residential units aren't selling. Again, a few minor (less than €10M) other projects isn't enough to service their debts.

So who will be left after our "period of austerity"? Hmmmmmmmm...................

[PVC King]

I hope you are wrong; have we learned nothing from the contagion that resulted from the various collapses of Carroll, NcNamara etc. At this point those that have a viable order book should be permitted to trade on as clearly the valuation curve has reached a point that like the height of the boom does not reflect the medium term outlook, this time it reflects armageddon, which has happened but is a phase we need to move on from. Accept the following

A government of gobshites wrecked the economy
The Euro will soon be a very different entity
Asset prices are below medium term value
The cost base is adjusting down (only the public service left to follow)
Most FDI has and will stick around given the revised labour and real estate costs including construction costs for capital intensive plant.

We need four things to happen

1. A new government with a strong mandate
2. The Euro to be restructured
3. FDI flows to continue and grow employment
4. Asset values to stablise

[FunkyCoW]

http://www.irishconstruction.com/page/2679

NAMA takes over McNamara properties

NAMA is set to take control of a string of properties from developer Bernard McNamara

McNamara has flat complexes, offices, a share in the Shelbourne Hotel and in the infamous Irish Glass Bottle site in Dublin. McNamara Construction, which has undertaken flagship work on the Shelbourne Hotel, Sir John Rogerson Quay and Lansdowne Road, shut all its sites on Thursday night

Construction at a number of public projects such as Letterkenny Hospital and Tallaght IT have fallen victim to the failing business with workers refused entry to the sites and forced to picket at the gates. Declan Taite, of Farrell Grant Sparks, has invited offers for the business and for its assets that include substantial work in progress sites, large premises in Dublin and Galway, plant and machinery and motor vehicles. The business also retains what the receiver describes as an experienced and technically skilled labour force that come with it. The company went into receivership following a legal action by the National Asset Management Agency (NAMA) as part of its efforts to recover the millions owed to Irish banks.

NAMA is to shut down more property developers as early as this week, as it moves to take control of some of the country's biggest borrowers. The agency is also expected to take action against other companies belonging to developer Bernard McNamara, after putting his building firm Michael McNamara Construction into receivership late last Thursday. Informed sources said other developers also faced action in the near future as Nama accelerated its work.

One source said that Nama had been ''getting its ducks in a row'' for legal proceedings for a number of months, with the appointment of a panel of insolvency experts and lawyers. The agency is expected to target groups where construction companies are owed significant sums by related development firms, as was the case with McNamara.

[PVC King]

This has been coming for a while, whilst I feel sympathy for BMcN personally it is vital that any contagion is prevented from entering the construction/design supply chain below them; as far as is possible with the assets as currently valued.

There have been some very interesting developments today economically not least of which is the Fed seeming to indicate that they will backstop the ECB if things get messy; that combined with a fall in Unemployment leads me to one conclusion; the International picture looks more favourable but it is based on printing money which will lead to inflation. If the country didn't have banks with balance sheets equivelent to 1000% of GDP you would regard it as a problem; but given the debt thats outstanding at corporate, governmental and personal level; cross both sets of fingers that Ben gets the choppers spinning and soon.