Sindo: McNamara: ‘I don’t owe €1.5 billion’

If McNamara is really in trouble then he wont be going ahead with the redevelopment of the Burlington site. Itll be interesting to see if that one goes ahead.

I wonder is Conor Lenihan working off the figures from his departments latest “kebab index”?


SO by those figures does that mean 120,000 immigrants have left the country? No wonder the bottom has fallen out of the rental market - renting out properties to the people building the new ones, you gotta love the logic.

Now you’re compromising our sense of reality to label it “logic” :wink:

The Devil was in the detail once again.
(nice blog by the way… .good post on the M/T… oh sorry I meant Money Trail… sorry no excuse me, good post on the Mahon Tirbunal! Terrible to see such revelations kept on the QT :unamused:

That’s exactly what happened all across the country, Canny McSavvy bought the section 23 and his first tenants were the guys building the estate, they moved on and now he’s trawling the council looking for tenants.

I was suprised RTE gave this guy a full half hour platform on Marion Finucane today. He bamboozled her with planning, economics etc and basically was a free promotion for him. He sounded a bit worried and he is normally very media shy so you have to wonder why he was prepared to go on biggest Sunday show in the country to appeal for his reputation etc. Combined with the credit crunch and Irish property market/economy contracting does his liquidating of several prime city buildings indicate he is in trouble ? Or sees trouble down the line for the commercial sector?

Interest bill of >€1.5 million per week. Ouch.

Turbine says that McNamara stands to loose 50% value on a site on Dun Laoighre due to a change of planning from the local authority there.

At the moment confidence is key for these heavily geared developers. Same with Sean Dunne and others. Rumours and gossip, true or not, could make funding (on which they are critically dependent) more expensive or vanish completely for these guys.

Apart from the talk on this site, I have been told by reliable people in corporate finance circles that there is at least one large high profile developer about to be toppled by his debt burden and cash flow drought. MacNamara would be one of the potential candidates.

As predicted if this happens it could start the herd stampede… at the moment it’s jostling

If one of the big “smarty mcBallsy” goes under then Cannies at all levels of the food chain will start to look at protecting and defending their perceived wealth with attempts to get out intact .

They should make a film about this mess, say something along the lines of Wallstreet, we could call it Wallsbridge with a certain “thy will B Dunne” in the Michael Douglas role and “beat that Drumm” as the naive hard working banker to the developer elite friend of the litte guy etc etc (cough cough ahem).

If McNam does go the wall what will he lose?
Are his loans his or the private companies? What can the bank go after to recover their loans? Does it go as far as personal assets, houses etc?
Excuse my ignorance. I tend to think that the Average Canny McSavvy has a lot more to lose in their PPR and whatever the bankers can get their hands on as they wouldn’t have a company to hide behind.

Developers of any size will have had to give personal guarantees to leverage highly.

Bankers want to see skin in the game

However if you borrow enough you can argue a la trump that it’s in the banks interest to leave you with some money to try and get it all back so you may not be forced in to complete bankruptcy

Did B Mc M not get canny mc savvy’s to stump up the money for the Glass Bottle place? I remeber my friend advising me to get into it as it was money for old rope.

A friend of mine works for one of the Irish property tycoons. It was interesting for me to find out how some of these deals worked during the go-go years.

The developer would identify the investment. He would approach one of the Irish banks or stockbrokers in order to get them to raise €Xm in equity from their high net worth private clients. He would then approach the bank with this equity and they would agree to fund the rest of the deal. It was not unusual for the developer to have little of his worth at stake in any particular development. The risk lay with everyone else and you only really had the upside. This was the smart money indeed.

To echo ewd3’s point above - the Davy’s banking report from yesterday did say that banks (for the moment at least) are reluctant to put too much financial pressure on their developer friends as it is in everyone’s interest to avoid bankruptcy. This cozy arrangement may only be a temporary phenomonon however, as foreign banks may be less inclined to continue to support an Irish developer.

According to the last issue of the Phoenix, it was Anglo-Irish who provided the majority of the cash.

Total cost was €426m.

288m of the cash was provided by Anglo. … 04127.html