Receiver appointed to (Mick) Wallace properties

mr_anderson · **Posted:** Tue May 24, 2011 2:00 pm

Quote:

A receiver has been appointed by ACC Bank to a number of properties controlled by developer and TD for Wexford, Mick Wallace.

Declan Taite of FGS was appointed last Tuesday to the Italian Quarter on Ormond Quay in Dublin city centre, the Behan Square apartment complex on Russell St near Croke Park, and to development land in Rathgar, Dublin 6

http://www.rte.ie/news/2011/0524/wallace-business.html

What are the chances that he will be forced into bankrupcy, thus having to step down from his role as a TD ?

(this http://www.thepropertypin.com/viewtopic.php?f=4&t=36297 already exists, but I thought the appointment of a receiver merited a new thread)

Daniel Plainview · **Joined:** Feb 19, 2009 **Posts:** 995

The Pink Panther himself will be on Radio 1 in a few minutes.

Sure he's down to earth, one of the boys..... etc etc etc

Pill · **Joined:** Mar 2, 2007 **Posts:** 3815

Yep, he was a nice developer chap, a very decent fellow.

Punter · **Joined:** Jun 15, 2008 **Posts:** 318

mr_anderson wrote:

What are the chances that he will be forced into bankrupcy, thus having to step down from his role as a TD ?

Why not? NAMA is playing hard ball so could well happen...Assume good people of wexford have come around to the view that he cannot do anything for them a la Healy Rae so will be happy enough for a change.

coc · **Joined:** Nov 3, 2008 **Posts:** 1280

I think Wallace has said over and over that he is far to small to be included in NAMA. I'd say he'd love to be paid €200k of the taxpayers money to 'manage' his portfolio on their behalf, like some of the more connected parasites.

mr.agent · **Joined:** Nov 5, 2009 **Posts:** 631

coc wrote:

I think Wallace has said over and over that he is far to small to be included in NAMA. I'd say he'd love to be paid €200k of the taxpayers money to 'manage' his portfolio on their behalf, like some of the more connected parasites.

He's not going into NAMA because his creditor bank (ACC/Rabobank) chose not to take part in NAMA. He is large enough to take part in NAMA (20million in debts) so don't get taken in by this 'I'm just a little guy' shite.

Larry · **Joined:** Jun 28, 2008 **Posts:** 4435

Mick Wallace owes €40m.

I wonder what the businesses' assets are?

I wonder what his total lifetime profit from these businesses is?

I wonder if those two figures add up to €40m?

Not rhetorical questions btw - I have no clue. But if the numbers don't add up then Wallace's claim that his businesses have been successful for years is not true. Bank forbearance and leveraging yourself all to hell while nobody asks questions is not a success.

That scenario would remind me of the siltation in the hotel sector, where Nouveau hotels claim they are profitable and going-concerns as long as you ignore that pesky €40m debt. As though we are expected to waive away the debt run-up that allowed the conditions of viability to sprout in the first instance. Meanwhile, the un-leveraged competitor hotel (aka the schmuck) down the road enjoys none of the benefits of what €40m might have brought (new buildings, loss-leading offers, marketing expenses, luxurious over-staffing, the best chefs etc.), and yet he now has to compete on price and service with the shiny subsidised Nouveau gaff up the road. Oh, and part of his taxes are going to carry that €40m on the bank's books!

I'm not saying that is the way Wallace's businesses were set up, just that it is possible to imagine some entrepreneurs of the celtic tiger era being in that boat.

mr_anderson · **Posted:** Wed May 25, 2011 5:43 am

Wallace does not expect to become bankrupt

Quote:

Developer and TD, Mick Wallace has said he does not expect to be forced into bankruptcy, following ACC's decision to appoint a receiver to a number of properties controlled by his building company.

Speaking to RTÉ Radio 1's Drivetime programme, Mr Wallace said he had given personal guarantees to the banks, but the banks wouldn't make any more money out of making him bankrupt, and it may indeed cost them money to do so.

However, Mr Wallace conceeded that that didn't mean it wouldn't happen and he didn't know how it would all play out. If Mr Wallace were to be declared bankrupt, he would no longer be entitled to hold a Dail seat.

http://www.rte.ie/news/2011/0524/wallace-business.html

Far from being safe from bankrupcy and losing his seat, it sounds like he's basicially at the mercy of the banks.

DSE3Br · **Joined:** Feb 24, 2008 **Posts:** 1333

Doesn't this create a MASSIVE conflict of interest, having a member of parliament hopelessly beholden to a bank?

laughinglawyer · **Posted:** Wed May 25, 2011 7:15 am

Hmm..... Now what was the name of that poiitician who used huge bank loans and other 'monies' to fund an opulent lifestyle and who WAS able to exert influence from a position of power..... as distinct from a backbencher.... let me see ...was the name Haughey ?

DSE3Br · **Joined:** Feb 24, 2008 **Posts:** 1333

Do two wrongs make a right?

laughinglawyer · **Posted:** Wed May 25, 2011 7:22 am

Who are you saying has done a wrong and what exactly was it ?

DSE3Br · **Joined:** Feb 24, 2008 **Posts:** 1333

CJ Haughey committed plenty of wrongs.

As for Mick Wallace, he is clearly at the mercy of ACC so there is a clear conflict of interest.

laughinglawyer · **Posted:** Wed May 25, 2011 7:34 am

No conflict whatever. Its between him and ACC -he has zero influence over any legislation that MIGHT ever affect ACC -which is currently outside the ambit of NAMA- and has acted independently to speed up the whole cleanup process -who do you think finished off -Liam Carroll -when the other banks still talked bollox about him trading his way out of trouble.
Mick's companies have debts -thats it -if he is pursued to personal bankruptcy he must resign his seat -end of story.
Edit :
Actaully I'm wrong there it was KBC that throttled Carroll -but my point remains valid -if he is personally uanble to pay his called in personal debts -then bankruptcy beckons.

jxbr · **Joined:** Aug 2, 2009 **Posts:** 1513

Wallace is just a mouth.

He invested in property. He gave personal guarantees. He made bad decisions. He still has lots of money but he is not using any of this to pay his debts. His company has €13.5 in retained earnings. He pays himself over €250,000 a year as well as his TD's salary and expenses. He played chicken with RaboBank who are the wrong people to try these games with. He wants to try to retain as much of his accumulated "wealth" (that is unpaid debts) and not pay what he owes. He wants to be absolved of personal responsibility for personal decisions. Rabo want the fuck out of Ireland and are doing everything they can to recover as much money as possible.

I would want to see Wallace perform some actual miracles before I beatify him like many others want to do.

Receiver appointed to (Mick) Wallace properties

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