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Greenstar in Receivership

  • 23-08-2012 11:49AM
    #1
    Cantona's Collars
    Registered Users, Registered Users 2 Posts: 33,709 ✭✭✭✭


    Just breaking on the news,a receiver has been appointed to Greenstar which they seem puzzled by as they look to be in ok shape financially.

    Not much else yet as this story is developing.


Comments

  • #2
    Defiler Of The Coffin
    Closed Accounts Posts: 2,117 ✭✭✭Defiler Of The Coffin


    It appears the banks called in the loans. A sign of desperation on their part? There must be concerns over the way the company is being run, otherwise why would they cut their own noses off?


  • #3
    later12
    Closed Accounts Posts: 11,298 ✭✭✭✭later12


    The Irish Times report that Greenstar will continue to operate as a going concern, and Greenstar says there have been expressions of interest from investors. Probably be looking at a slimmed down version of the company emerging from this process.

    http://www.irishtimes.com/newspaper/breaking/2012/0823/breaking26.html


  • #4
    Bullseye1
    Closed Accounts Posts: 5,730 ✭✭✭Bullseye1


    I understand the banks are in trouble but the fact that they appear to be calling in loans prior to their maturity is ridiculous. I guess we need to see the full facts. I wonder which bank or banks is involved?


  • #5
    later12
    Closed Accounts Posts: 11,298 ✭✭✭✭later12


    According to the Irish Times article above, Greenstar owes >€80m to a consortium that includes AIB, BKIR and non domestic banks including Barclay's & HSBC.

    It's not ridiculous to call in a loan prior to maturity if the loan covenants are being violated in a way that is contrary to the bank's interests.

    A bank doesn't have any interest in penalising or impeding the operations of a profitable company operating in accordance with its business plan. If a bank, or a consortium of banks, has legitimate grounds to suspect trouble on the refi horizon, they are right to act quickly and call in the loans.


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