Tuskar group investors liable for €18m debt
Wednesday November 05 2008
MORE THAN 85 investors are understood to be personally liable for up to €18 million of the estimated losses accrued by Tuskar Asset Management PLC, a Wexford-based investment firm that is now in examinership.
It's understood that all the investors in several group companies connected with the Tuskar fund provided personal guarantees in the event that the company incurred losses on its investments. Such guarantees are considered unusual in PLC entities.
The company has invested ¤50 million in properties and assets, but amassed estimated debts of up to ¤18 million, according to court documents.
A number of those who invested 'significant amounts' did so from selfadministered pension funds.
The Tuskar investors have been summoned to a meeting this week where they will be briefed on the company's status by accountant David Hughes, of Ernst & Young, who was recently appointed as examiner to six related companies in the Tuskar group.
Under the terms of the examinership, Mr. Hughes has 100 days to prepare a financial rescue plan for the firm. Hughes was appointed after three investors petitioned the High Court early last month.
The Tuskar Board and a number of other shareholders were against the petition, but the High Court ruled that the company was insolvent and appointed the examiner. There was a dispute about the extent of that insolvency, with the three petitioners suggesting liabilities of ¤18 million and the Board suggesting ¤11 million.
The court heard that the Tuskar group controlled properties through related companies in which it had invested ¤50 million and had a 'blue chip' asset base. Mr. Hughes told the court that the firm had a fair chance of survival if its debts could be restructured or fresh investment secured.
