Homebuyers in Meath Face Uncertainty as Developer Goes into Liquidation

Homebuyers in County Meath are grappling with uncertainty after the appointment of a liquidator to the developer of their housing estate, Meathamatic Ltd. The news has left several buyers, who paid substantial deposits for homes in the Ringfort Estate in Rathmoylon, concerned about the future of their investments.

On the morning of October 31, 2023, Elma Beirne, who is currently pregnant, expressed her distress as she attempted to gain entry to a creditors’ meeting at the Royal Marine Hotel in Dun Laoghaire, Dublin. Alongside her was Peadar Tóibín, leader of the political party Aontú. They were among a group of five potential homeowners who have been left in limbo since paying deposits ranging from €27,500 to €30,000 over five years ago.

The situation escalated when Meathamatic Ltd, facing rising construction costs and interest rates, requested an additional €60,000 payment from the buyers in 2023. Although the homes are reportedly completed and connected to utilities, they remain unoccupied, and only five of the original fifteen buyers still hold hope that their contracts will be honored.

The creditors’ meeting aimed to discuss the appointment of a liquidator for the company, after a recent audit by the Revenue Commissioners revealed that the contract with MDS Construction had not been registered. This oversight led to a significant tax liability for Meathamatic, which director Joe Elias claimed the company could not fulfill. Elias, a US software entrepreneur and qualified medical doctor, stated, “We had no alternative but to wind the company” after being unable to repay the VAT in full.

During the meeting, Elias described his role in the development, asserting, “I have never developed property in my life, I’m not a home builder.” He explained that Meathamatic was incorporated in June 2019 after acquiring the site for approximately €550,000 and borrowing €1.8 million from the State-owned Home Building Finance Ireland (HBFI) to fund the project.

Concerns about the slow progress of the development led HBFI to indicate its intention to call in the loan, which resulted in Spudmuckers Ltd, another company associated with Elias, taking over as the secure creditor in June 2023. The meeting also revealed that Elias’s wife, Donna Marie Sagba, had previously been a director of Spudmuckers but resigned in December 2023.

Representing the buyers, Damien Harper from PUC Consultants raised questions about the financial statements provided to creditors, which estimated the current net real estate value of the Ringfort Estate at €6.38 million. He argued that the buyers, classified as unsecured creditors, were not guaranteed any compensation as the homes could be sold at market value.

Despite the grim outlook, Beirne and the remaining buyers remain hopeful. “There’s only five of us left; he can still sell the other eleven houses at whatever price he wants,” Beirne said. “We’re asking for justice, for someone to work with us, and just to be reasonable and fair.”

After the meeting, Harper indicated that further action might be necessary, including potentially urging the Revenue Commissioners to apply to the court to appoint a different liquidator. The ongoing situation has left many buyers anxious about the fate of their investments and the future of the Ringfort Estate.