Jorcon incurs net loss of €2.5m as liabilities grow

A property company owned by a number of well-known business figures and professionals had liabilities that exceeded assets by €14.3 million in value at the end of December 2012, according to abridged accounts just filed.

During the years the shareholders in Jorcon Ltd made regulation financial contributions towards the servicing of the company's loan facility, according to the accounts. The company incurred a net loss of €2.5 million in the 16 months to the end of December 2012.

Quinlan Nominees
The accounts show the directors held shares through two companies, Quinlan Nominees Diagonal One Ltd and Quinlan Nominees Diagonal Two Ltd. The shares were held in the following percentages: David Frame (1.75); Brian McGettigan (13.16); Eoin Bastible (1.75); Eugene Davy (1.40); Hugh Mohan (17.54); Mark O'Donnell (2.11); Matthew Brennan (2.63); Owen Kelly (2.63); Paddy Sugrue (3.51); Paul Devine (8.77); Peter Lavelle (17.54); Ronan O'Caoimh (17.54); and Thomas Dowd (3.51).

Mr McGettigan is a director of McGettigan Holdings Ltd and Regan Development Ltd, formerly Crofton Airport Hotel Ltd. Mr Mohan is a barrister and former head of the Bar Council. Mr O’Caoimh is a director of Trinity Biotech.

The company was incorporated in November 2006. Bank of Scotland (Ireland) registered mortgages against the company in 2007, including in relation to property on Goatstown Road, Dublin 17. The company sought planning permission in 2007 and 2010 to develop the Goatstown property, which is a former Murphy and Gunn car showroom.

While the accounts do not give information on the size of the bank debt, the previous accounts, for the year ended August 31st, 2011, show an outstanding bank loan of €9.2 million and amounts owed to directors of €6 million.

Capitalisation facility
Notes to those accounts state the company borrowed €8.4 million from Bank of Scotland Ireland to buy Victor Leasing Ltd, with a capitalisation of interest facility of up to €500,000 with a maturity date of March 2008. A revised facility was to February 2009, and no further facility had been agreed. During the year to August 2011, the directors had contributed €255,237.

The director believe appropriate funding will be available for the foreseeable future, according to the accounts, dated April 24th, 2013.