Ireland

Ireland's financial crisis morphed into political turmoil Monday, as the country's coalition government began to unravel in the wake of an unpopular international bailout and Prime Minister Brian Cowen pledged to call an election next year if a crucial budget package is approved, The Wall Street Journal reported. Mr. Cowen's concession on early elections was triggered by moves earlier Monday that undercut the stability of the shaky coalition led by his Fianna Fail party.

Ireland finally sought tens of billions in bailout money from the European Union and the International Monetary Fund after weeks of bickering that has exposed the limits of Europe's attempt to restore financial markets' confidence in the stability of its single currency, The Wall Street Journal reported. The deal between Ireland and the EU took shape Sunday as EU finance ministers backed Ireland's request for a three-year package of loans totaling roughly €80 billion ($110 billion), according to people familiar with the matter.

Mr Justice Clarke of the High Court has appointed an interim examiner to the Four Star Pizza takeaway chain after it was heard that the company is insolvent and unable to pay its debts, InsolvencyJournal.ie reported. The Company has a debt to National Irish Bank of €4.9 million and its other creditors include an ingredients supply firm, a printing firm and the Revenue Commissioners. The appointment comes as Courts grow increasingly reluctant to grant Examinerships to struggling firms.

Top Irish government officials acknowledged for the first time Thursday that the country is grudgingly edging toward a massive international bailout, The Wall Street Journal reported. Patrick Honohan, the head of Ireland's central bank, said he expects the country will receive "tens of billions" in international loans. "It will be a large loan because the purpose…is to show Ireland has sufficient firepower to deal with any concerns of the market," he said in a radio interview. Finance Minister Brian Lenihan added: "It's clear we will need some form of external assistance. ...

Pressure mounted on Ireland on Wednesday to agree to a joint European Union-International Monetary Fund rescue package, as fresh evidence emerged of fading confidence in the country’s banking system, the Financial Times reported. With the rescue mission poised to begin negotiations with the Irish government on Thursday, analysts said there was growing evidence that bank deposits were dwindling, after Irish Life & Permanent said corporate customers had withdrawn €600m – more than 11 per cent of the total – over a matter of weeks in August and September.

Anglo Irish Bank is seeking summary judgment for more than €17 million against a Dublin businessman over unpaid loans, the Irish Times reported. The case arises from two loan facilities – the first, for a maximum £5.75 million, was made available by Anglo in October 2008 to Mr Healy, while the second, for €10.8 million, was made available in May 2009. The 2008 facility was to enable Mr Healy to fund an equity investment in Calyx Holdings Ltd (CHL), a company set up to acquire Clayfox Gilttop Ltd.

Senior European officials laid the groundwork for a bailout of Ireland that could reach €100 billion ($136 billion), saying experts would travel this week to Dublin to examine the country's finances amid alarm about the dire straits of the Irish banking system, The Wall Street Journal reported. Several euro-zone countries urged Ireland to adopt an aid package, according to people familiar with the matter, and some pressed for the package to include direct loans from the U.K. alongside assistance from Europe and the International Monetary Fund.

A decision in proceedings taken by a US bankruptcy trustee involving Anglo Irish Bank chief executive David Drumm was adjourned yesterday to allow the judge time to consider matters, the Irish Times reported. Ms Justice Elizabeth Dunne reserved her decision on an application on behalf of Massachusetts trustee Kathleen Dwyer for an “order in aid” from the High Court to assist her in administering Mr Drumm’s bankruptcy. The judge said she needed time to consider the case. Mr Drumm filed for bankruptcy in Massachusetts on October 14th.

A receiver has been appointed over McNamara Construction, after Nama rejected the business plan put forward by the group, InsolvencyJournal.ie reported. The firm is owned by Bernard McNamara, who took over from his father Michael in the 1940s. One of the company’s big breaks was the construction of RTÉ’s sports and social club on its Donnybrook campus. Other state contracts followed. It soon became one of the biggest construction companies in the state.

An investor in the private equity consortium bidding for EBS building society – one of two final bidders for the lender – says that debt forgiveness for its borrowers would only be considered in limited cases or not at all, The Irish Times reported. Billionaire investor Wilbur Ross, who is part of the consortium led by Dublin-based Cardinal Capital Group, said he was still optimistic about EBS and Ireland, despite fears of a further wave of mortgage losses and the debt crisis.