I wonder how much of his own profits is he being asked to take a hit on, and it is also surprising that the creditors are not looking for a bit more than 40%, especially since he must have a lot of personal wealth that he can use to refloat the company.
Aren’t they getting 60% to 70%?
What does this mean:
“Carroll remains committed to repaying his lenders in full.”
Does this mean that the creditors will agree to have the debts written down, and when he’s back on his feet Carroll will pay them the remaining 30% to 40% saying “ah go on…you will, you will, you will.”
If write downs of 30% to 40% on development loans are going to be the norm. We could see bad debts of €100BN or more on the banks €450BN loan book
Thank goodness the banks are private companies. Can you imagine if the government had put us in a position where the tax payer had to take the 100bn hit?
My reading of the article is that deals are being sought with trade creditors, not lenders…
Yep, the lenders are secured, for what it is worth, it’s the unsecured lads (I imagine subcontractors, suppliers etc) who are being asked to take the hit.
But my guess would be that those trade creditors are just as deep in hock to the banks and other creditors so can they afford to take a hit to help Liam sleep easier at night?
Good point, last year I acted for a guy whose principal debtor went into examinership, a scheme was agreed in which the creditors got 30 cent in the euro, my guy had to liquidate his own company as a result because he owed the Revenue pretty much what the other guy had owed him.
I’d say it will be sold on the basis that if you don’t accept then they will be looking at examinership/liquidation and there’ll be less again for everyone.
Not all of 450b is property related.
Might be worth keeping an eye on Greencore shares.
From July 2006…
Has Liam not already dumped a lot of his portfolio, I seem to remember a few articles last year?
As far as I know he still has 30%
30% of 450 bn is 135 bn
40% is 180 bn
Property related is about 70% of the full assets total, I guess - so 315 bn
I would guess about 200 bn is commercial/C&D with the rest of the property element residential. So unless we see major defaults on the residential side, we probably won’t see a figure that high. But there is no guarantee we won’t see bad loans/cramdowns/short sales in residential rise way above historic levels, if fact, there is no reason to believe that this won’t happen.
I think he had large holdings in a few listed companies, ICG, Aer Lingus and Greencore, he definitely dumped the Aer Lingus shares, I read he lost around 22m on them.