Ireland

Three banks, which between them are owed a total of €114.5m by house builder McInerney Homes, are opposing examinership of the construction group, The Independent reported. Barrister Rossa Fanning, counsel for Bank of Ireland, Anglo Irish Bank and KBC, told Ms Justice Mary Finlay Geoghegan yesterday that the banks were against the appointment of an examiner by the High Court. Judge Finlay Geoghegan said the matter would be heard by Mr Justice Frank Clarke on Friday.

Ireland's troubled banking system became the latest flash point in Europe's continuing economic crisis, as the government said it would split up the weakest of its major banks to stave off a run by depositors. Irish Finance Minister Brian Lenihan, days after meeting European Union officials, said state-owned Anglo Irish Bank Corp. would be divided into a government-backed bank that would hold customer deposits and an "asset recovery bank" holding the bank's increasingly bad loans. The asset-recovery bank could be sold in whole or part down the road. Mr.

The Minister for Finance, Brian Lenihan, TD today announced that the State bank guarantee for short term bank liabilities, including corporate and interbank deposits as well as debt securities would be extended from its current expiry date of September 29 2010 to 31 December 2010, Finfacts reported. The Department of Finance said a State guarantee will therefore be available for both short- and long-term liabilities up to the end of the year.

The Irish businesses of ICT services group Calyx have gone into receivership, The Irish Times reported. The formerly-listed company will continue to trade as a going concern while a buyer is sought. Tom Kavanagh of Irish insolvency practice KavanaghFennell has been appointed receiver. The Calyx Group, which employs more than 500 people in Ireland, the UK and Northern Ireland, was placed in administration on September 3rd. Geoff Rowley and Phil Armstrong, partners at FRP Advisory LLP, were appointed joint administrators of the business in the UK and Northern Ireland.

Ireland's government is seeking European support to stabilize tottering Anglo Irish Bank, hoping to end a recurring banking nightmare that has sparked fresh fears about its national finances, The Wall Street Journal reported. Struggling with the euro zone's biggest budget deficit relative to its gross domestic product at more than 14% last year, Irish authorities are also grappling with the ballooning cost of bailing out the banks, especially state-owned Anglo Irish—a bill that has already hit €33 billion ($42.55 billion), or roughly 20% of Ireland's GDP.

Any day now NAMA will appoint a formidable line-up of what it calls enforcement professionals, or liquidators and receivers to you and me. This panel, to be recruited in Ireland and the UK, will be on the front line in the expected confrontation between NAMA and Ireland's heavily indebted and usually insolvent developer class, The Independent reported in a commentary. The planned appointment of these insolvency firms is already inducing mild panic in the companies and individuals they will be grappling with.

The number of unemployment benefit claimants rose by 2,500 in August on a seasonally adjusted basis, The Irish Times reported. Some 455,000 people are now in receipt of benefits according to the Central Statistics Office. This the largest number ever recorded since the Live Register of claimants was first compiled in 1967. The standardised unemployment rate, which is calculated separately, rose to 13.8 per cent last month, up from 13.7 per cent in July. It was 13.1 per cent at the start of the year. The rate of joblessness in August was the highest since mid-1994.

Anglo Irish Bank made an €8.2 billion loss for the first six months of the year after writing off €5.8 billion on loans sold or heading for Nama and €2.5 billion on loans remaining at the bank. Provisions and impairments totalling €8.3 billion were offset by an operating profit of €151 million, which left the bank with an €8.2 billion loss for the six-month period. The loss surpassed the previous record set by Anglo last year for the highest loss for a six-month period taken by an Irish company. The bank lost €4.1 billion for the corresponding period last year – the six months to March 2009.

Eircom warned that it could breach the covenants on its €3.8 billion net debt within the next 12 to 18 months as the company’s revenues continue to shrink in the recession, The Irish Times reported. It also wants a reduction in labour costs of €90 million over the next three years to make the business more competitive. This is all against a backdrop of declining sales across the group. Revenues fell by 8.5 per cent in the year to the end of June to just more than €1.8 billion. On a positive note, Eircom trimmed its operating costs by 11.5 per cent.

The High Court has appointed an interim examiner to regional airline Aer Arann. The move gives the company court protection to enable the examiner to implement a restructuring plan, RTÉ Business reported. Michael McAteer of Grant Thornton is to be interim examiner to Comhfhorbairt (Gaillimh), which trades as Aer Arann. A statement from the airline said Mr.McAteer's appointment would not affect day-to-day business and the company would continue to operate as normal. Aer Arann said there would be no impact on customer travel or bookings.