Division at heart of 拢22m dispute with John Magnier may be wound up
The division of Laing O鈥橰ourke at the centre of a row over a failed Spanish property deal with Irish tycoon John Magnier could be wound up, it is understood.
Explore Investments [No 2] is a division of Laing O鈥橰ourke鈥檚 development arm Explore Investments and was set up by the UK鈥檚 third-largest contractor to jointly develop a 3.6ha site in Marbella.
According to the Times newspaper, Magnier is considering demanding a 鈥渃ease trade鈥 order against his joint-venture partner after the pair fell out over payments for the 鈧25m (拢22m) site.
Magnier claims that Laing O'Rourke owes him half of the 鈧25m (拢22m) price paid for the site in December 2006, but the Irish contractor disputes this and has so far paid just 鈧3m (拢2.6m).
A source close to the case said: 鈥淎 deal was done subject to planning permission being granted and that has not been possible. The Spanish authorities have changed the game [by not granting the expected planning permission]. Laing O鈥橰ourke bought 50% on the basis of title being unencumbered and planning permission granted. So there is no deal.鈥
It is understood that there will be a further hearing on the dispute in Ireland on 15 December, but that Magnier鈥檚 representatives could serve 鈥渃ease trade鈥 papers against Explore Investments [No 2] by the end of this week.
A Laing O鈥橰ourke spokesperson said there would be no more funding made available to Explore Investments [No 2] as the site was no longer viable due to Spanish authorities giving planning permission for only two villas.
He added: 鈥淟aing O鈥橰ourke will be providing in full for the 鈧3m loan due from its subsidiary, Explore Investments [No 2], following a judgment entered against Explore Investments by an Irish court. This provision will have no material affect on the group trading results for the year.鈥
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