DEVELOPERS MICHAEL and John Taggart's business became the first high-profile victim of the property slump when banks owed a reported €150 million took control of their group yesterday.
Three Taggart group companies have been placed in administration in Northern Ireland, while a receiver has been appointed to one in the Republic.
In a statement, the developer and housebuilder founded by brothers Michael and John Taggart, said the appointments had been made at the request of Bank of Ireland and Ulster Bank, to which it is said to owe €150 million. The liabilities with which the receiver in the Republic is dealing come to €20 million, and relate to four sites in Kinnegad, Co Westmeath, Kinsealy, Dublin, Muff, Co Donegal and Trim, Co Meath. Two other Taggart developments in Trim and Naas are not affected.
Taggart could have exposures to other banks, as well as liabilities to suppliers and sub-contractors who worked on the group's construction projects, so its total debts have not been established. Company records show that it has dealt with most Irish banks, including AIB, Anglo Irish Bank and National Irish Bank.
It has been in talks with its banks for several months. Michael Taggart recently said that the group intended trading out of its difficulties.
It is understood its housebuilding business in northern England, Hartlepool-based Cecil M Yuill, which it bought in 2006 for €100 million, could also be placed in administration. The businesses placed in administration in Northern Ireland are Taggart Holdings Ltd, Taggart Homes Ltd and Taggart Properties Ltd. In the Republic, Taggart Homes Ireland Ltd has been placed in receivership.
Gareth Kelleher of Pricewaterhousecoopers in Belfast has been appointed administrator. Bill O'Riordain, a partner in the same firm's Dublin office, is acting as receiver in the Republic. An administrator's task is to establish if a company can be rescued and its creditors paid. Receivers take over companies on behalf of secured creditors.
Both processes are likely to involve the sale of assets, mainly property and development land. At the beginning of last year, the group had €860 million worth of land in Ireland, Britain and Europe.
A number of private individuals invested in two joint ventures with the group, Frasier Estates and Millmount, through Dublin stockbrokers Goodbody. These businesses, focused on development and construction in the Belfast area, are not involved in either the administration or receivership process.
In its statement, Taggart said that it has a core workforce of 15, down from the 60 staff it employed last year. Last month, it was reported that talks aimed at getting Castleway Developments chairman, John McCann, to put €100 million into the group had failed.
