June 21, 2021
Proposed changes to Local Property Tax
The Minister for Finance announced proposed changes to the Local Property Tax (“LPT”) recently. All homes will be re-evaluated under the new regime. The rate is being cut, however the...
Last week the High Court appointed joint provisional liquidators to another Irish company linked to the collapsed GPG.
Mr Justice Senan Allen heard last Wednesday evening that the application to appoint provisional liquidators to Dolphin MUT 116 Ltd, with registered offices in Naas, Co Kildare, was being moved for reasons including the High Court having last month granted a petition to wind up another Irish company in the GPG, MUT 103 Ltd.
On Wednesday, Counsel for MUT 116, told Mr Justice Allen it has extensive liabilities and a significant number of creditors, many of whom, although represented by brokers, are retail investors.
Its liabilities to loan note holders to date amount to some €36 million while another €63 million will fall due over the lifetime of loan note instruments to 2024.
The company’s only asset is €10,500. While documents placed a face value of some €177 million on security held by the MUTs in German property assets, a “note of caution” has been sounded on the ability to recover under the security in light of ongoing fraud investigations and the applicable insolvency law in Germany, the petition stated.
The insolvency administrator has indicated he considers the Irish loan claims to be subordinated with the effect the security may be challenged.
According to Counsel, the directors of MUT 116 are of the view it is appropriate to appoint provisional liquidators to continue engagement with creditors and with the insolvency administrator in order to get the best outcome possible for creditors.
The loan notes issued to Irish investors are an unregulated product and are thus not covered by the Central Bank-run Investor Compensation Scheme leaving little recourse to Irish retail investors. Investors could have potential recourse against their brokers if there was any negligence or mis-selling involved. Lavelle Partners are currently advising certain investors in respect of these matters.
For more information, please contact Partner and specialist in professional negligence and financial services disputes, Ciarán Leavy, at 01 644 5800 or [email protected].
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