Anglo Irish Bank Corporation has applied for the liquidation of Mandela Rhodes Place - one of Cape Town's flagship developments - amid claims that the bank is owed almost R220-million by the developers. The Mercury says that the papers lodged with the Western Cape High Court paint a grim picture of the West City Precinct's financial affairs.
Anglo Irish Bank says that the R500 000 instalments from West City Precincts ceased in August last year. Its financial statements show the company made a loss of R7,8-million in 2010, following a substantial loss of R20-million in 2009.
Anglo Irish Bank says that West City Precincts borrowed money to repay existing debts on properties it bought for the development of Mandela Rhodes Place. West City Precincts is owned by Frank Gormley, who set up the Irish-South African development company Eurocape.Read the article in The Mercury.More on Mandela Rhodes Place.More on Eurocape.