A so-called ‘vulture fund’ has appointed a receiver to three retail units in Terryland Shopping Centre, which were owned by a Mayo-based property company.
Launceston Property Finance Ltd – an investment fund controlled from Luxembourg which purchased tranches of loans from the former Anglo Irish Bank – appointed Tom Kavanagh of Deloitte over certain assets owned by Oriental Handcrafts Ltd (OHL).
Mr Kavanagh has now taken control of Units 1, 2 and 7 in Terryland Shopping Centre, as well as five units in Ballina Shopping Centre, on foot of a IR£570,000 mortgage taken out by OHL with Anglo in 1996.
OHL – which is based in Westport – is headed-up by Mary Conway and her sons Edward and John, who both have addresses in Dublin.
According to the most recently available account (for the year ending December 2014), the company had a deficiency in funds of almost €1 million. Launceston Property was owed more than €3.4m at the end of 2014, and the OHL directors noted there was a “material uncertainty” over the future of the company.
“The directors are in discussions with [Launceston] to formulate a business plan to reduce bank debts and/or refinance the loan facilities at a sustainable repayment level going forward. The directors have been unable to ascertain from Launceston if there will be any form of permanent financial support in the future.
“Should the outcome of discussions be detrimental, the implications for the company are that it may be unable to realise its assets and discharge its liabilities in the normal course of business.”