130 FIRMS HELD MEETINGS OVER WIND-UPS - The Irish Times says that 130 companies called a meeting of creditors to wind up their businesses during February, according to figures released yesterday. The amount of unpaid debt involved was €133m of which slightly more than half was unsecured, according to the company information business Vision-net. Among the companies to hold creditors' meetings in February were the four Toni Guy hairdressing outlets in Cork, Limerick, Dublin and Kilkenny; and companies involving the well-known Kilkenny hurler, DJ Carey - DJ Carey Enterprises Ltd, Dublin Janitorial Centre Ltd and Alton Ltd. Construction, wholesale, manufacturing, hotels and restaurants were among the sectors affected, with construction companies being the largest group in terms of creditors' meetings. The wholesale and retail sectors came next. Receivers were appointed to 44 companies during February, an increase of 63 per cent over the previous month's figures. The number of registered court judgments awarded in January 2011 was up 59% on January 2010. A total of 679 judgments were awarded in January in the courts for non-payment of debts totalling €29 million
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SOLICITORS NOT ABLE TO REPAY €80m ANGLO LOAN - Four solicitors have stepped down as partners at a prominent law firm after running up millions in personal bank debt through exposure to a failed property company, says the Irish Independent. The four - Dermot O'Donovan, Michael Sherry, Adrian Frawley and Thomas Dalton - resigned as partners at Limerick-based Dermot G O'Donovan solicitors in the past six months. They owe Anglo Irish Bank a total of more than €80m through their investment in the failed Fordmount property group, which built Limerick city's iconic 13-storey Riverpoint building close to the Shannon Bridge after personally guaranteeing loans. Their involvement in the development forced the firm to pull out of the running as a legal adviser to NAMA last year. New filings at the Companies Office show Mr Dalton resigned as a partner in June 2010 after consenting to judgments of €21.4m against him by the bank. He has since left the firm. The other three stepped down as partners at the end of last year, just days before Anglo Irish Bank secured judgments of more than €65m against them, but are still working as full-time solicitors at the firm - which employs 25 people. It is understood that their decisions to step down were taken in the best interests of the law firm, its staff and clients.
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RETAIL CHAIN TO CREATE 210 JOBS - More than 200 jobs will be created over the next 18 months with the expansion of retail group, Bestseller, which owns Vero Moda and Jack & Jones, writes the Irish Examiner. Retail property consultants Savills has been appointed by Danish group Bestseller to acquire up to 30 stores in Ireland which will create 210 jobs. Bestseller's retail portfolio includes 67 stores throughout the country. The brands include ladieswear labels Vero Moda, Vila and Only and the menswear brand Jack & Jones. The Danish group plan to expand the brands to include Pieces, an accessories retailer, and Mama-Licious which cater for maternity clothing. Director of Savills Ireland Larry Brennan said: "Bestseller's decision marks a significant endorsement of Ireland's retail market. It is estimated that approximately 210 new jobs will be created throughout Ireland in most major towns and cities a result of the expansion, which is fantastic news for the Irish economy."
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NORTHERN ROCK TO OFFER 90% MORTGAGES - The Financial Times says that Northern Rock is poised to launch a range of mortgages offering up to 90% of a property's value, marking the nationalised bank's return to riskier lending three years after its collapse and government bail-out. The loss-making lender could make the new high loan-to-value mortgages available as early as Monday, according to people familiar with the plans, as it seeks to boost revenue ahead of a return to private ownership. Northern Rock's aggressive boom-time lending practices, including the Together mortgage that offered borrowers up to 125% of their property value, caused one of the most high-profile failures of the financial crisis. Since then it has restricted the loan to value it offers customers to 85%. The decision to increase this to 90% comes as Northern Rock looks to higher margin lending to drive up profitability and boost its attractiveness to buyers. Higher loan-to-value mortgages command greater margins due to the added risk of losses should house prices fall. While potentially more profitable, high loan-to-value lending is also more risky, particularly in the current climate where house prices are facing downward pressure. The lower amount of equity means there is a smaller buffer to soak up house price falls.
