Today in the press

Tuesday 29 July 2014 10.24
Today in the press
Today in the press

€375M COULD BE SAVED THROUGH DEBT DEAL – The Irish Independent reports that taxpayers could save up to €375m a year if European leaders back a deal to allow Ireland pay off just a share of the International Monetary Fund bailout loans early, Finance Minister Michael Noonan said.

The proposed deal would see Ireland raise cash on the markets to repay €15bn of the more than €22bn that the Government owes to the IMF. It comes after the international rescue fund hiked interest rates to almost 5pc, compared to little more than 2pc on the markets.

The deal would shave €20m to €25m of interest from every €1bn refinanced, the finance minister said. On €15bn that saving would add up to between €300m and €375m a year.

The plan is "certainly worth doing," Minister Noonan said.

The scheme will require sign- off from all euro zone member states as well as the UK, Sweden and Denmark because contracts on their share of the 2010 bailout loans mean that currently the debts all have to repaid at the same time, he said.

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GREECORE REPORTS HIGHER REVENUES - The Irish Times reports that revenues at London-listed convenience food group Greencore increased by 6.7 per cent to £326.4m in the 13 weeks to June 27th, buoyed by strong growth in its convenience foods division and a buoyant “food to go” market in the UK.
 
In a statement, Greencore said that the group “continues to trade well” and it remain confident in its ability to deliver adjusted EPS growth for the financial year in line with market expectations.
 
The group’s convenience foods division recorded revenue of £310.5m, 8.7 per cent higher than the prior year on a reported basis and up 9.3 per cent on a like for like basis.
 
In the UK, despite a challenging grocery market, like for like revenue was 10.1 per cent higher than in the prior year.The “food to go” market was buoyant throughout the period, Greencore said, driven in part by growth in small store formats. 
 
In the US, the group grew revenues by 16.9 per cent, including the contribution from Lettieri’s, the Minnesota food to go manufacturer it acquired in February.

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JUDGE SETS DEADLINE ON ADDING KPMG AS CO-DEFEND – A judge said he wants to be told by the end of October whether it is proposed to join accountancy firm KPMG, former auditors of Irish Nationwide Building Society, as a co-defendant in a legal action brought over €6bn losses at the society, according to The Irish Examiner.

Mr Justice Peter Kelly said a decision is awaited from either IBRC or others concerning the possible joinder of KPMG as a defendant. 

It seemed a law firm, Eugene F Collins, had been appointed to review legal advice on this issue and that was awaited.

The High Court judge said he had some sympathy in that regard with Terence J Cooney, a former director of INBS being sued for “enormous sums” who had himself joined KPMG as a third party and sought a stay on the proceedings pending a decision on the KPMG defendant joinder issue.

Until that decision was made, Mr Cooney does not know where he stands, the judge said. However, he did not believe Mr Cooney was prejudiced to the extent he should be granted a stay on the proceedings as very little would be happening in the case before October and any costs incurred by Mr Cooney could be met by a costs order in his favour.

The judge said the court is trying to manage this litigation, does not know what the position is on the joinder issue and could not be left indefinitely with a question mark over the matter. The court should be informed by the second motion day in October as to whether it was proposed to join KPMG as a defendant, he directed.