COURT BID TO BLOCK KPMG ROLE IN CLERYS - Some 12 former concession holders of the now closed Clerys department store in Dublin are considering an application to the High Court next week to block the appointment of KPMG as liquidators to OCS Operations Ltd, the entity that ran the shop.
Kieran Wallace and Eamonn Richardson of KPMG were appointed as provisional liquidators of OCS Operations on June 12th, a day that saw the company change ownership twice and the store cease trading. It is understood that the concession holders will cite a possible conflict of interest with KPMG. The firm is auditor to a number of companies associated with Deirdre Foley’s D2 Private, which is a member of the Natrium Ltd joint venture that acquired OCS Operations and related companies on June 12th. On the same day, Natrium transferred ownership of OCS Operations to Jim Brydie, a UK insolvency specialist, for €1. Mr Brydie then petitioned the court to have KPMG appointed as provisional liquidators. That appointment is due to be confirmed on Monday. The Irish Times has learned that solicitor Michael Lavelle, acting for the 12 concession holders, has written to law firm McCann Fitzgerald, which is representing the liquidators, to seek clarifications of this potential conflict of interest.
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KBC CUTS FIXED MORTGAGES BUT WON'T TOUCH HIGH VARIABLE RATE - Another bank has reduced its fixed rates for new and existing customers, instead of reducing the variable rate for established mortgage holders, writes the Irish Independent. KBC Bank has one of the highest variable rates in the market at 4.5%. It is now offering existing customers the option of fixed for between two and five years at rates as low as 3.90%. The 3.90% two-year fixed rate only applies to those who take out a current account with the bank and have their mortgage payments made through this account. Otherwise, the two-year fixed rate is 4.10%. Director of products at the bank Eddie Dillon defended the bank's failure to cut its variable rate, arguing that the move in February to allow existing customers get 0.2% off their mortgage rate for opening a current account was an effective reduction in the rate. The bank said an existing mortgage customer on a variable rate of 4.5% can save €1,736 in a year on a €300,000 mortgage by availing of KBC's new two-year fixed rate of 3.90%, with a KBC current account. Finance Minister Michael Noonan has set a deadline of tomorrow for banks to respond to his demands for rate cuts.
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GROWTH IN MORTGAGE APPROVALS SLOW IN MAY - The growth in mortgage approvals tailed off slightly last month despite an increase of more than 20% on an annual basis. A total of 2,461 mortgages were approved in May, according to new figures released by the Banking and Payments Federation Ireland. On a monthly basis, mortgage approvals climbed 4.6%. The annual rate of growth, although still significant during May, represented a slowdown on the previous month’s figures, when a year-on-year increase of close to 32% was recorded, says the Irish Examiner. Analysts indicated yesterday that the Central Bank’s new mortgage lending restrictions may be having an impact in quelling the availability of credit. The caps, which were finalised in January and which were aimed at curbing the increase in credit, introduced an 80% loan-to-value (LTV) limit for prospective homebuyers, bar those seeking to purchase their first home.
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SENIOR UBER EXECUTIVES DETAINED IN FRANCE - The two most senior Uber executives in France are in police custody following complaints that they were conspiring to organise illegal work, just days after thousands of taxi drivers took to the streets to protest against the US company, writes the Financial Times. Uber confirmed that Pierre-Dimitri Gore-Coty, its general manager in western Europe, and Thibaud Simphal, head of the company’s operations in the country, were detained by police in relation to a complaint filed late last year by one of the country’s taxi unions. Two people close to the matter said that the pair could be held for up to 48 hours, and added that the complaint related to its UberPop service, which allows users to arrange rides with private cars. The company said: “Uber is co-operating with the authorities to dispel any confusion.” The detention comes just days after thousands of taxi drivers across the country protested against what they say is unfair competition from the San Francisco start-up.
