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Thread: K Club may need a digout. Step up FF!

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    Default K Club may need a digout. Step up FF!

    Bishopscourt Investments skating on thin ice it seems. Surely FF would not allow the K Club to slip..


    DR MICHAEL Smurfit and developer Gerry Gannon are facing huge financial difficulties at the K Club. They are seeking to defer repaying bank loans, amid crippling losses that are expected to continue at least until next summer.

    Along with a lot of other luxury golf and hotel complexes, the K Club -- which hosted the Ryder Cup in 2006 -- is struggling amid a major reduction in consumer spending.

    The complex, which includes a hotel, country club and two courses, has racked up a loss of €8.1m, with revenues plunging to €13.9m -- down from €20.3m.
    The company behind the club, Bishopscourt Investments, is hoping to defer repaying a bank loan of €55m.

    The company's accounts said: "Based on projections, the group expects to incur further operating losses in the period to June 30, 2011."

    The accounts cover the year ended 2008, but the directors provide an update, saying the economy could prevent the company from getting further bank loans or other funding.

    Dr Smurfit holds 51pc of the shares, with the remainder owned by Mr Gannon. Dr Smurfit could not be reached at his offices in Monaco yesterday.
    K Club seeks to defer bank loans due to crippling losses - Irish, Business - Independent.ie

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    Politics.ie Member greengoose2's Avatar
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    The King has no clothes!

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    Politics.ie Member Aristodemus's Avatar
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    They have cut their costs back to the bone. Two years ago they employed almost 30 greenkeeping staff, now they have 6 to cover the whole complex. The members are already paying over €6500 a year in annual subs and are unwilling to pay more, but will have to. The much lauded "joint ownership" scheme, really a time share scheme, has been a disaster with very little uptake. It's hard to see how it can survive without a massive subvention from Smurfit himself as he and Gannon have fallen out.

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    Politics.ie Member Aindriu's Avatar
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    Let the damn place fail. It is just another example of how many people lost the run of themselves during the so called 'Celtic Tiger'.
    If you continue to elect idiots in elections, don't be surprised when the result is an idiotic government.

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    Quote Originally Posted by Aristodemus View Post
    It's hard to see how it can survive without a massive subvention from Smurfit himself as he and Gannon have fallen out.
    The Public purse has deep pockets. No need for DR. S to raid his Swiss bank account.

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    Quote Originally Posted by Aindriu View Post
    Let the damn place fail. It is just another example of how many people lost the run of themselves during the so called 'Celtic Tiger'.
    Celtic Tiger has very little to do with it, it has a long history of financial woes.

    It is, and always has been popular with wealthy foreign business people - again, nothing to do with the celtic tiger.
    Condemnant quod non intellegunt.

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    Politics.ie Member Aindriu's Avatar
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    Quote Originally Posted by Xiogenes View Post
    Celtic Tiger has very little to do with it, it has a long history of financial woes.

    It is, and always has been popular with wealthy foreign business people - again, nothing to do with the celtic tiger.
    Then it is elitist and has no place in a true republic.
    If you continue to elect idiots in elections, don't be surprised when the result is an idiotic government.

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    I know little about the developer Gerry Gannon, but Dr. Michael Smurfit always struck me as a very honourable businessman.

    Smurfit must be feeling the pinch though as his new yacht under construction in Italy has been sold on before completion and his ‘Lady Ann Magee 2’ is withdrawn from sale.

    It is a real pity that plans by a Cork Green Party member to bring Prince Albert of Monaco to the K Club this year to mark the 25th anniversary of the Irish Library in Monaco were shelved at the 11th hour; such an event would have been a huge boost for the K Club and the entire Irish tourism industry.

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    Politics.ie Member Sync's Avatar
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    They could bring people in, but the main issue they had was getting the amount of dues paying Irish people. They're simply not out there.

    He made a decent profit on the new yacht when he sold it, so I don't think it can really be seen as a weakness at all.

    We had a thread here a while ago where a poster represented a guy who had a small private firm which was losing money, so they put their own funds into propping it up. They were complaining at how unfair life was. The answer nearly everyone gave them was "He shouldn't have put his own bloody money into an obviously doomed project".

    It's the same situation here. Smurfit and his partners aren't going to throw their own funds into this. Sure defer the loans, as I'm sure the banks will allow given the lack of other options, but it would just appear to be putting off the inevitable.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Politics.ie Member cozzy121's Avatar
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    Every cloud has a silver lining, and the failure of this place would be a fitting footnote to bertie's property bubble.
    "WAKE UP! THE RICH ARE RAPING YOU!"

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