Gasworks goes into administration

By Staff Reporter

A LAGANBANK councillor has expressed his surprise and disappointment at the announcement that Ormeau Gasworks Limited has gone into administration.

SDLP man Pat McCarthy said: “This is not something I was aware of as I had not even heard that Ormeau Gasworks was in trouble.”

The property firm played a major role in the regeneration of South Belfast’s Gasworks sitem which is situated just off the lower Ormeau Road.

Ormeau Gasworks Ltd restored some of the Victorian structures on the site as well as developing new buildings.

Administrators said it had come under pressure as the result of funding constraints and ongoing legal action.

The Bank of Ireland is owed around £4m, but should get most of that back through the sale of properties. Those properties are Meter House and the adjoining office building, which is described as Plot 6 but is better known as the Batik Building.

The Batik Building is currently listed for sale on a commercial property website for more than £4m.

The company made a pre-tax loss of £259,000 in 2010 and was believed to be facing further losses in 2011.

Cllr McCarthy added: “I will be looking into this and enquiring if the Council can do anything as I am very disappointed to hear this news.”

The administrator’s report states that the company was engaged in litigation concerning £440,000 of ground rent collected in respect of Ormeau Gasworks but not paid to the head landlord.

 

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