A JOINT venture between private clients of Dublin stockbroker Goodbody and troubled Belfast developer Taggart Holdings has been given court protection in Northern Ireland from its creditors.
Last month, Taggart Holdings, owned by brothers John and Michael Taggart, was placed in administration, a company rescue mechanism, at the request of Bank of Ireland and Ulster Bank, to which it is said to owe €150 million.
Yesterday it emerged that Taggart Homes Belfast Number One Ltd and a subsidiary, Taggart Estates Ltd, part of a €300 million property development joint venture between Goodbody clients and Taggart involving three companies, has been placed in administration at the request of its directors.
Under Northern Irish and English law, a company that is having difficulty paying its debts, meeting financial commitments or facing other difficulties can be placed in administration, which gives it court protection from anyone attempting to enforce debts or take legal action against it.
Administrators are answerable to the courts and have to devise a rescue plan that will benefit the company's creditors.
If this is not viable, the administrator has the option of winding up the business.
Taggart and Goodbody set up the joint ventures up in 2006 to buy up to €300 million worth of land around south Belfast and Dundonald on which they planned to build and sell houses.
They were funded with a mix of debt and around €30 million in equity from Goodbody clients.
Garth Calow and Rob Birchall, partners with PricewaterhouseCoopers (PWC) in Belfast, administrators of the Taggart group, have also taken charge of Taggart Homes and Taggart Estates.
Mr Calow said yesterday that he was hoping to sell the company's development land bank and pointed out that a number of parties had already been given details of what it holds.
"It is planned to conclude discussions with a limited number of parties within a short period, after which we anticipate moving forward with a preferred party to complete the sale," he said.
Goodbody's clients have 50 per cent of Taggart Homes Belfast Number One and, under the original deal's terms, have first refusal over the balance had the Taggarts decided to sell.
The stockbroking firm last night said it would enter talks with the administrators regarding all of its options.
PWC said yesterday that Taggart Estates owned five sites and has a share in a sixth, totalling 352,000 sq m (87 acres), most of which are within 11km of Belfast city centre.
All of it, barring 2,000 sq m, has full or outline planning permission for housing.
Stuart Pearson of Pearson Holdings recently confirmed to The Irish Times that he was interested in bidding for Taggart Holdings itself. His advisers last week contacted the administrator to open talks on the group's possible purchase.
John and Michael Taggart set up the company in 1989, and over the last half decade, it became one of the more high-profile beneficiaries of the property boom on both sides of the Border.
