Developer owing €88m loses control of key city companies

Date Published: 10-Oct-2011

BY ENDA CUNNINGHAM

One of the biggest property developers on the western side of the city has lost control of two key companies in his business empire – their parent company has debts of almost €90 million.

Ulster Bank has appointed joint Receivers and Managers to Coolagh Constructions and Kapstone, which were owned by the Crehan family, and built hundreds of houses and apartments in Knocknacarra, as well as a stretch of the Western Distributor Road.

The parent company, Strinler Ltd, which is headed by Chris Crehan, has racked up debts of around €88.5 million.

In the past fortnight, Ulster Bank, the biggest lender to the Crehans, seized control of Coolagh and Kapstone and appointed Luke Charleton and David Hughes of Ernst and Young to run the companies.

Chris Crehan, his wife Margaret and son Damian have now lost control of the Clybaun Hotel; land and sites at Ballymoneen Road, Boleybeg, Ballyburke and Rahoon in Galway and at Ballinacurra in Limerick, as well as agricultural land in Rahoon; Recreational and Amenity land at Ballyburke; 12 apartments on Sandy Road and its office building on the Clybaun Road.

The bank also has personal guarantees and other guarantees for more than €20m from the Crehans.

Last year, Strinler had losses of €3.2m, down from €21.2m in 2009 and according to the most recent accounts filed (for the end of 2010), has bank debt totalling €88.6m.

The company blamed the collapse of the property market for its financial difficulties – last year, it wrote down the value of its land bank by 30%.

The parent company came under pressure when AIB called in a guarantee for €2.6m and the group was unable to meet it.