THREE INVESTORS in companies involved in purchasing and developing land for investment have told the High Court that the companies have an €18 million excess of liabilities over assets.
The investors also said that unless the companies secure court protection they were in imminent danger of liquidation due to the downturn in the property sector and other factors.
Among the projects in which the companies became involved were developments in Maynooth, Co Kildare, Dún Laoghaire, Co Dublin,Wexford town and Dalkey, Co Dublin, the petitioners said.
They had concerns about a number of those projects and were not aware of any provision to refinance a short-term €15 million loan connected with the Dalkey project, which was repayable next Thursday.
The three investors who are seeking the appointment of an examiner to Tuskar Asset Management plc and five related companies, said the investors in the companies include individuals who invested "significant amounts" from self-administered pension funds.
The investors also faced additional risks because of personal guarantees entered into, they said. The three, who are members and creditors of the companies, expressed concern that several commitments and arrangements had been made on behalf of the companies "without any obvious means of financing them".
A €15 million loan was repayable by October 16th next and they were unaware of any provision to refinance that, they said.
"It is the failure of the company to plan for the current market circumstances which has precipitated the imminent collapse of its business," they said.
Tuskar Asset Management controls properties through related companies in which it has invested some €50 million, the court heard. It and its related companies have an excess of liabilities over assets of some €18 million, it was stated.
The investors said they had commissioned a report from an independent accountant which showed that provided certain steps were taken and the companies secured court protection, that they had a reasonable prospect of survival.
Those steps included restructuring of loans and the securing of additional development funding.
Mr Justice Peter Kelly yesterday fixed Tuesday next for the hearing of a petition by the three investors for the appointment of an examiner to TAM, with offices at John's Gate Street, Wexford, and to five related companies, Tuskar Residential Investment Properties Ltd, Tuskar Commercial Investment Properties Ltd, Tuskar Development Company Ltd, Tuskar Bulgaria Ltd and East Quay Hotel and Leisure Ltd.
The petitioners - John Power, James Boggan and Liam Eviston - all with addresses in Co Wexford, have between them lent €1.4 million to TAM and related companies and have brought their petition without the knowledge of most of the board of directors of the companies, the judge was told.
The judge directed that he would hear the petition on Tuesday and made directions for the matter to be advertised and all relevant parties to be notified.
