‘Dragon’ Bannatyne says IBRC putting deals ‘in limbo’

High-profile Scottish businessman Duncan Bannatyne claims a number of deals relating to his chain of fitness centres in the UK are in limbo as a result of the State's decision to liquidate Irish Bank Resolution Corporation in February.

Speaking to The Irish Times , Mr Bannatyne, who has become a celebrity from his role with the BBC's Dragons' Den programme, said a number of deals were close to being concluded when IBRC was placed into liquidation in dramatic fashion by the Government three months ago.

Mr Bannatyne, who borrowed money from Anglo Irish Bank in 2007, also expressed frustration that he has not received a response to certain recent communications with the special liquidators of IBRC at KPMG in relation to his loans.

“They are not talking to me,” Mr Bannatyne said.

He said a deal was agreed some time ago with a builder to develop a number of former tennis courts attached to a fitness club he owns in Mansfield, England.

On ice
Mr Bannatyne said he agreed a deal to sell this land for £700,000 to the builder, who secured planning permission for the site.The deal was not completed before IBRC's liquidation and Mr Bannatyne said it is now on ice.

“I know it’s only small potatoes but it all adds up. If I don’t sell the land then the builder might sue me.”

Mr Bannatyne said he also has some sale and leaseback deals in the pipeline and a potential 25-year office rental in Milton Keynes worth £150,000 per year that are currently on hold as a result of IBRC’s liquidation. “It’s very frustrating,” he said.

Bannatyne Fitness Ltd borrowed £180 million from the former Anglo Irish Bank six years ago. It pays £10 million a year off the principal sum and its debt now stands at £120 million.

“All I can do is sit and wait,” Mr Bannatyne said of the IBRC liquidation.

The businessman said he was “close” to securing new funding to replace the IBRC loan. “Selling one or two properties would help,” he added.

He said real-estate group Savills carried out a valuation of the properties in February at the behest of IBRC. This placed a valuation on them of £217 million.

No comment
No comment was available from the special liquidators in relation to Mr Bannatyne. However, it is understood that they believe he is receiving an appropriate engagement from IBRC's staff in the UK.

As part of the liquidation of IBRC, KPMG has been charged by the Government with valuing the bank’s various loans and seeking to sell them at prices that match the valuations.

Any loans not sold by the liquidators by August are slated to be transferred to the National Asset Management Agency, which will work out the loans over time.

Mr Bannatyne said his fitness business is “performing fairly well” and that the company has had no difficulty repaying its loans. It currently comprises 59 fitness centres and has 180,000 members.

When asked why he chose to source his loans from Anglo Irish Bank, Mr Bannatyne said: “They offered us the best deal.”

He never dealt with the bank’s former chairman Sean Fitzpatrick or ex-chief executive David Drumm. “I dealt with their UK team. I found them to be good.”

Mr Bannatyne has just concluded shooting for another series of Dragons' Den for the BBC, which he said would air in June and July.