NAMA appoints receiver to Limerick construction firms

THE National Asset Management Agency (NAMA) have moved in on three Limerick firms under the Chieftain Group due to multi-million euro loans owed to Anglo Irish Bank and AIB.

THE National Asset Management Agency (NAMA) have moved in on three Limerick firms under the Chieftain Group due to multi-million euro loans owed to Anglo Irish Bank and AIB.

A total of four Chieftain companies are now in receivership and liquidation.

NAMA has appointed Gearoid Costelloe, managing partner of Grant Thornton chartered accountants, as statutory receiver to three firms- Chieftain Construction Ltd, Chieftain City Campus Ltd, and Chieftain Developments Ltd.

New files reveal that the appointment was made on February 4, and follows the appointment of liquidator Richard Maguire to Chieftain Construction Ltd and Chieftain Construction Holdings Ltd, last month.

Mr Costelloe’s responsibilities differ from the liquidator, who will handle the sale of assets not charged to the bank.

The mortgage debentures - or loans secured by the bank in relation to buildings and properties - date from September 2004 to August 2007.

Five other Chieftain firms are currently trading, but the business could not be contacted prior to going to print.

Overall, the firms have procured in excess of €2billion worth of construction projects in the past 20 years, but more than €64 million is owed to creditors across Ireland and the UK.

Parent company Chieftain Construction Holdings owes over €11m in bank loans to Anglo Irish Bank and Bank of Ireland. Separately, group bank loans for the holding company amount to €79.4m, but its other subsidiary companies are not in liquidation at present. Headed by Limerick man Ger O’Rourke, the companies are registered at his main office at Mahon House, Upper William Street.

The 49 year-old, a director of 31 companies, apologised to creditors last month who are unlikely to see any financial return on services provided to the construction companies.

While the companies have a string of interests abroad - stretching from Chicago to Tripoli - a series of setbacks have hit the companies in the past year. The company’s €150 million Coonagh Cross retail has just one main anchor tenant - Tesco - after it failed to receive further planning permission.