A RECEIVER and liquidator have been appointed to two property development companies controlled by solicitor Paul Hanby, auctioneer Paul Newman and builder Michael Whelan.
Chesterbridge Developments and Chesterbridge Homes were wound up at two creditors’ meetings in Dublin earlier this week.
Prior to the appointment of a liquidator, a receiver was appointed to Chesterbridge Developments by Ulster Bank which is owed €34 million. The company’s main asset is an interest in land at Newcastle, west Dublin where it had previously built and sold homes.
The receiver, accountant Martin Ferris of Dublin firm Ferris Associates, has the power to act ahead of the liquidator, accountant Derek Earl of Grant Thornton, in relation to the asset.
A statement of affairs presented to creditors on Monday shows that the directors estimate that Ulster Bank will have to write off €13.3 million of its loans after the bank receives all proceeds from the sale of “option lands”, which the directors claim is worth €20 million.
Chesterbridge Developments is owed €2.8 million by debtors which the directors estimate will realise €323,000. The company is holding stock worth €556,000.
The Revenue Commissioners are owed €183,000, according to the firm’s statement of affairs.
Three directors are owed a total of €475,103 – Mr Whelan, a Longford builder, is owed €332,776, Mr Newman of Douglas Newman Good estate agents is owed €87,769 and Mr Hanby €54,558.
Unsecured creditors, who are owed €1.3 million, are unlikely to be repaid. The firm’s largest unsecured creditors are O’Connor Sutton Cronin, which is owed €287,348 and Anthony Reddy Associates, owed €228,876.
BCM Hanby Wallace, the Dublin law firm founded by Mr Hanby and where he was previously a partner, is owed €175,173.
The Revenue is owed €64,156 by Chesterbridge Homes. Unsecured creditors of that company are owed €2.6 million, though the largest creditor is its sister company, Chesterbridge Development, which is owed €2.47 million.
Mr Hanby and Mr Wallace are investors in the MacDonagh Junction shopping centre in Kilkenny.
Their investment ran into financial difficulties earlier this year.
Mr Whelan has also developed properties and invested in overseas projects through the Moritz Group. He is also a shareholder and director of Maplewood Developments and investor in telecoms and broadband firm, Digiweb.
