Building firms funded through Immigrant Investor Programme insolvent

Two accountants, appointed to find a way forward through examinership for two insolvent building firms, are to investigate a number of matters of concern, a judge ruled today.

Judge John O'Connor noted, after appointing chartered accountants Joe Walsh and John Healy as joint examiners to Trinity Homes Limited and a related company, Yeronga Ltd, that they would review a dividend payment of almost €1million by Trinity Homes to a former director.

He also directed the experienced insolvency practitioners to investigate whether significant sums of investors’ money were unaccounted for and had been diverted to fund the development of private rather than social housing.

Yeronga is owned by Trinity Homes and both companies have been involved in the construction of rural housing for a number of local authorities including Wexford, Tipperary, Kerry and Meath. Accommodation has also been built for the housing charity Cluid.

The two firms were established in 2014 but are now unable to pay their debts, difficulties caused by an increase in the cost of building materials, an inability to meet scheduled loan repayments and an arrangement to buy the shares of a former Trinity Homes director on which more than €900,000 had already been paid out.

The problems of both companies have already been aired in the High Court. Several judges have been told that their main source of funding was through the Immigrant Investment Programme, under which non-EEA citizens who invest €1 million in Ireland can obtain residency. The companies have borrowed more than €11 million through the programme.

John O’Donnell SC, who appeared with Ross Gorman and Graham Kenny Solicitors, for Trinity Homes and Yeronga told the Circuit Civil Court today that a draft consent order by the court had been prepared.

He said that, in talks with John Kennedy SC and Sally O’Neill for Project Trinity Homes and Project Trinity Homes 2, representing foreign investors in the companies, the parties had reached a consensus on what was to happen going forward in the examinership.

Mr Kennedy had earlier told the court his clients were owed €9million and had concerns about the running of the two building firms now in examinership and wanted an investigation carried out.

Trinity Homes Limited directors are Stephen Mahon and Ecaterina Olaru, of Quarrylands, Dunboyne, Co Meath, and Ben Reid of Navan Road, Dublin. They are also directors of Yeronga.