THREE BANKS seeking to have house builder McInerney placed in receivership would be unlikely to get a better deal than the €25 million offer currently on the table if they went ahead with their plan, the High Court heard yesterday.
McInerney has been in examinership since September. It owes three banks – Anglo Irish, Bank of Ireland and KBC – €113 million on foot of a secured debt.
A bidder for the group, US private equity fund Oaktree Capital, is offering the banks €25 million cash in full and final settlement of their debt, but the banks want to place the group in a “long-term” receivership, which they say could recover up to €75 million.
Bill O’Riordan of PricewaterhouseCoopers, who is examiner to McInerney, told the High Court yesterday the banks’ receivership plan could not possibly deliver a better return than €25 million.
The banks plan to take over McInerney’s land bank and sites, build new homes and sell them over a period of 11 years.
Mr O’Riordan said the banks’ plans take no account of the discount that would have to apply because the houses would effectively be sold by a receiver. He also says that calculations include no margin for whichever company actually builds, nor do they take into account other costs.
The €25 million offer by Oaktree forms part of the rescue plan by Mr O’Riordan which most creditors have backed. The court cannot approve the scheme if one group of creditors can show it would fare better in a receivership or liquidation. The case continues.
