TWO BRITISH subsidiaries of Taggart Holdings, which is now under the control of its bankers, could shortly be placed in administration.
The news comes as it emerged yesterday that management at its Yuill Homes subsidiary in north-east England has bought the company back from the Belfast-based developer.
The Irish Times understands that Taggart Homes Carlisle Ltd and Taggart Homes Lumb Mill Delph, two English-based subsidiaries of Taggart Holdings, are likely to be placed in administration, a system of corporate rescue for troubled companies that operates under British law.
Taggart Holdings and a number of companies in Ireland were placed in administration and receivership on Monday at the request of Bank of Ireland and Ulster Bank.
The group reportedly owes €150 million to the two banks, but it is thought that its total debts could exceed this.
About €20 million of its liabilities relate to its operation in the Republic, specifically four sites in Donegal, Dublin, Meath and Westmeath, which have been placed in receivership.
As of yesterday, no action had been taken in relation to Taggart's Carlisle and Lumb Mill Delph subsidiaries, but it is thought that they could be placed in administration by the end of this week.
There is no equivalent to administration in Irish law. The system is designed to rescue companies and repay creditors. Where there is no prospect of succeeding in this, administrators attempt to get the best result for creditors by winding up the company.
Meanwhile, Newbridge Enterprises, owned by Yuill Homes managing director Daniel Mullins, his management colleagues and Bank of Scotland Ireland (BoSI), have bought that company from Taggart Holdings.
Taggart bought Yuill in early 2006 for €100 million with the backing of BoSI. The Hartlepool firm's management stayed with the business and have continued to run it autonomously.
Yuill is a long-established firm and is said to have continued to trade strongly and profitably through the downturn. It is not known if the price paid by management and the bank is more or less than that paid by Taggart in 2006.
Yuill management briefed workers about the changes yesterday.
