This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/world/2014/jul/10/tony-oreilly-castlemartin-sale

The article has changed 4 times. There is an RSS feed of changes available.

Version 2 Version 3
Tony O'Reilly: once Ireland's richest man, faces having to sell his homes Tony O'Reilly: once Ireland's richest man, faces having to sell his homes
(35 minutes later)
At his 300-hectare luxury County Kildare estate, Sir Tony O'Reilly once feted the rich, the famous and the infamous. Guest lists at the restored 18th-century mansion included the likes of former US secretary of state Henry Kissinger, a host of Irish prime ministers from the 1980s premier Garret FitzGerald onwards, business magnates and a succession of editors and chiefs of the global publishing industry.At his 300-hectare luxury County Kildare estate, Sir Tony O'Reilly once feted the rich, the famous and the infamous. Guest lists at the restored 18th-century mansion included the likes of former US secretary of state Henry Kissinger, a host of Irish prime ministers from the 1980s premier Garret FitzGerald onwards, business magnates and a succession of editors and chiefs of the global publishing industry.
Now the former billionaire is contemplating declaring himself bankrupt and putting up for sale his beloved Castlemartin to repay creditors owed a total of €195m (£155m).Now the former billionaire is contemplating declaring himself bankrupt and putting up for sale his beloved Castlemartin to repay creditors owed a total of €195m (£155m).
Only as recently as 2012, O'Reilly was reported to be worth around €1bn, not including the multimillion-euro fortune of his second wife, the Greek shipping heiress Chryss Goulandris. Now, it is a far smaller sum that has triggered a scramble for his assets. At the end of last month a Dublin commercial court refused the tycoon's request to delay a court order that he repay a debt of €22.5m to Allied Irish Bank.Only as recently as 2012, O'Reilly was reported to be worth around €1bn, not including the multimillion-euro fortune of his second wife, the Greek shipping heiress Chryss Goulandris. Now, it is a far smaller sum that has triggered a scramble for his assets. At the end of last month a Dublin commercial court refused the tycoon's request to delay a court order that he repay a debt of €22.5m to Allied Irish Bank.
A man once in the vanguard of the Celtic tiger phenomenon that turned Ireland into a galloping modern economy was reduced to making a plaintive appeal for more time. Known for his skills as a raconteur, his charm and hard work had seen his career span successes from international rugby hero to chief executive of one of the biggest names in corporate America, to Fleet Street tycoon. Now he was citing those same achievements in a plea to keep creditors from his door.A man once in the vanguard of the Celtic tiger phenomenon that turned Ireland into a galloping modern economy was reduced to making a plaintive appeal for more time. Known for his skills as a raconteur, his charm and hard work had seen his career span successes from international rugby hero to chief executive of one of the biggest names in corporate America, to Fleet Street tycoon. Now he was citing those same achievements in a plea to keep creditors from his door.
In court affidavits he said: "I have spent my whole life in business. I believe that, throughout a range of different commercial interests across a host of countries in several continents, I have built a reputation for honest dealing and straight talking."In court affidavits he said: "I have spent my whole life in business. I believe that, throughout a range of different commercial interests across a host of countries in several continents, I have built a reputation for honest dealing and straight talking."
Responding, Mr Justice Peter Kelly was blunt and to the point. O'Reilly was insolvent and the probability was that an asset sale would not cover the debt to AIB, Kelly said, according to an RTE report. The 78 year-old had been given enough time to pay up, the judge ruled. Responding, Mr Justice Peter Kelly was blunt and to the point. O'Reilly was insolvent and the probability was that an asset sale would not cover the debt to AIB, Kelly said, according to an RTE report. The 78-year-old had been given enough time to pay up, the judge ruled.
O'Reilly's finances had been severely damaged by his investments in crystal and porcelain maker Waterford Wedgwood and media group Independent News & Media, former owner of the UK's Independent newspaper.O'Reilly's finances had been severely damaged by his investments in crystal and porcelain maker Waterford Wedgwood and media group Independent News & Media, former owner of the UK's Independent newspaper.
O'Reilly and his brother-in-law Peter Goulandris had invested €400m in Waterfood Wedgwood, but in 2009 the banks financing the business pulled the plug and called in the receivers. O'Reilly lost control of Independent News & Media several years ago but in the course of a doomed power struggle over the media group – which pitted him against telecoms tycoon Denis O'Brien – the Irish Times claimed he had wasted €350m buying INM shares prior to its restructuring.O'Reilly and his brother-in-law Peter Goulandris had invested €400m in Waterfood Wedgwood, but in 2009 the banks financing the business pulled the plug and called in the receivers. O'Reilly lost control of Independent News & Media several years ago but in the course of a doomed power struggle over the media group – which pitted him against telecoms tycoon Denis O'Brien – the Irish Times claimed he had wasted €350m buying INM shares prior to its restructuring.
Some of the press commentary in Ireland, including from one member of the Independent News & Media stable, has been more generous. The group's bestselling Sunday Independent recently lauded O'Reilly after a barrage of negative stories about his debts.Some of the press commentary in Ireland, including from one member of the Independent News & Media stable, has been more generous. The group's bestselling Sunday Independent recently lauded O'Reilly after a barrage of negative stories about his debts.
As Sir Tony sits in his chateau at Deauville on France's Normandy coast this week – also has a hideaway in the Bahamas – pondering the option of declaring himself bankrupt, two writers from two different sides of the Irish political divide praised Ireland's one-time richest man.As Sir Tony sits in his chateau at Deauville on France's Normandy coast this week – also has a hideaway in the Bahamas – pondering the option of declaring himself bankrupt, two writers from two different sides of the Irish political divide praised Ireland's one-time richest man.
Dublin poet, playwright and biographer Ulick O'Connor extolled O'Reilly as a businessman who "had a vision for a new Ireland". O'Connor also opened up his personal archive which contains a long correspondence between himself and the tycoon dating back to the 1960s. Dublin poet, playwright and biographer Ulick O'Connor extolled him as a businessman who "had a vision for a new Ireland". O'Connor also opened up his personal archive which contains a long correspondence between himself and O'Reilly dating back to the 1960s.
While O'Connor would be regarded as a traditional Irish nationalist, O'Reilly's admirers also included one of the country's most trenchant critics of republican violence, the TV producer, columnist and former Marxist Eoghan Harris.While O'Connor would be regarded as a traditional Irish nationalist, O'Reilly's admirers also included one of the country's most trenchant critics of republican violence, the TV producer, columnist and former Marxist Eoghan Harris.
In the same paper, Harris too paid tribute to O'Reilly's contribution to Irish public life over five decades. It is all the more surprising given that in the 1970s when Harris was the chief strategic thinker for Sinn Féin-The Workers party (evolved from the old Official IRA), he wrote a pamphlet "Tony O"Reilly's last game", tracing the rise and fall of the billionaire's first business empire in the 1970s and seeking to portray him as the epitome of the new Irish capitalist man. In the same paper, Harris paid tribute to O'Reilly's contribution to Irish public life over five decades. It is all the more surprising given that in the 1970s, when Harris was the chief strategic thinker for Sinn Féin-The Workers party (evolved from the old Official IRA), he wrote a pamphlet, Tony O"Reilly's last game, tracing the rise and fall of the tycoon's first business empire in the 1970s that portrayed him as the epitome of the new Irish capitalist.
Three decades later, having worked for O'Reilly's Sunday Independent for more than 15 years, Harris defended his old boss. Harris singled out O'Reilly's "principled stand against Provo propaganda" as one reason he had come to admire the rugby star turned business tycoon, whose interests ranged across the planet from baked beans to newspapers. Prior to launching a business career, O'Reilly was a former Irish rugby International who played for the British Lions in South Africa. Today, having worked for the Sunday Independent for more than 15 years, Harris defended his old boss. Harris singled out O'Reilly's "principled stand against Provo propaganda" as one reason he had come to admire the rugby star turned business tycoon, whose interests ranged across the planet from newspapers to baked beans. Prior to launching a business career, O'Reilly was a former Irish rugby International who played for the British Lions in South Africa.
The former tycoon's business record was colossal. As well as owning 200 newspapers around the world, he had been the chief executive of the Heinz food corporation in the US and invented the "Kerrygold" butter brand that is still one of Ireland's most successful food exports. O'Reilly's business record was colossal. As well as owning 200 newspapers around the world, he had been the chief executive of the Heinz food corporation in the US and invented the Kerrygold butter brand that is still one of Ireland's most successful food exports.
But not everyone who works for Independent News & Media will recall O'Reilly's time at the helm with as much magnanimity as Harris, especially in the latter years, as debts mounted and jobs were shed. Although papers such as the Sunday Independent are still extremely successful in terms of readership and influence in Ireland, some of his other investments proved disastrous. But not everyone who works for Independent News & Media will recall O'Reilly's time at the helm with as much magnanimity, especially in the latter years, when debts mounted and jobs were shed. Although papers such as the Sunday Independent are still extremely successful in terms of readership and influence in Ireland, some of his other investments proved disastrous.
Insiders say his biggest error and the one that led to mutiny on the board was his acquisition of the Independent in London in 1995. One former news executive, who asked to remain anonymous, told the Guardian there was "seething anger" in Northern Ireland after its then profitable Belfast Telegraph was used as a "cash cow" to keep The Independent afloat. Insiders say his biggest error and the one that led to mutiny on the board was his acquisition of the Independent in London in 1995. One former news executive, who asked to remain anonymous, told the Guardian there was "seething anger" in Northern Ireland after its then profitable Belfast Telegraph was used as a "cash cow" to keep The Independent afloat.
"Millions were diverted from the budget of the Belfast Telegraph every year to prop up the Indy and it caused widespread anger among the staff at the paper," the former employee said."Millions were diverted from the budget of the Belfast Telegraph every year to prop up the Indy and it caused widespread anger among the staff at the paper," the former employee said.
According to one estimate, the financial life-support system provided for the Indy out of O'Reilly's operations in Ireland, including the Belfast paper, amounted to £12m in a single year.According to one estimate, the financial life-support system provided for the Indy out of O'Reilly's operations in Ireland, including the Belfast paper, amounted to £12m in a single year.
He was eventually supplanted on the board by his rival, the telecoms multimillionaire Denis O'Brien, who now holds the majority stake in the group and is the effective head of the media corporation. According to the Irish Times, O'Brien cut a dividend that was worth €14m annually to O'Reilly and hampered his ability to pay debts. He was eventually supplanted on the board by his rival O'Brien, who now holds the majority stake in the group and is the effective head of the media corporation. According to the Irish Times, the telecoms multimillionaire cut a dividend that was worth €14m annually to O'Reilly and hampered his ability to pay debts.
Now, O'Reilly is attempting an orderly disposal of what he has left. O'Reilly bought Castlemartin from the Earl of Gowrie in 1972 and turned part of it into a stud farm, as well as becoming one of the O'Reilly family's grand homes dotted across the globe. Now, O'Reilly is attempting an orderly disposal of what he has left. O'Reilly bought Castlemartin from the Earl of Gowrie in 1972. As well as becoming one of the family's grand homes dotted across the globe, part of the property was turned into a stud farm.
Selling the 18th-century mansion and estate would be a painful sacrifice for O'Reilly who used to host an annual party for his newspaper executives in a marquee on the estate as well as inviting politicians, editors and entrepreneurs. Selling the 18th-century mansion and estate would be a painful sacrifice for O'Reilly who used to host an annual party for his newspaper executives in a marquee there as well as inviting politicians, editors and entrepreneurs.
The loans used to try and prop up his shares in INM, were secured on Castlemartin and other family properties including his luxury pile at Glandore in Co. Cork. The loans used to try and prop up his shares in Independent News & Media were secured on Castlemartin and other family properties including his luxury pile at Glandore in County Cork.
For O'Reilly, now 76, Castlemartin is his "jewel in the crown" and will be the most wrenching fto sell - he has even pledged to sell the church and graveyard on the estate, where his parents and two of his grandchildren are buried. However, for O'Reilly Castlemartin is the "jewel in the crown" and will be the most wrenching to sell – he has even pledged to sell the church and graveyard on the estate, where his parents and two of his grandchildren are buried.
Another grandee of Ireland's emergence as a modern economy, financier Dermot Desmond, spoke out over O'Reilly's treatment this week. Citing AIB's own bailout at the hands of the Irish government during the credit crunch, Desmond said: "The Irish Government showed sensitivity to the bank and the bank should have shown the same sensitivity to Tony O'Reilly." In the wake of the near-collapse of the country's economy, honest dealing and straight talking is not enough. Another grandee of Ireland's emergence as a modern economy, financier Dermot Desmond, spoke out over O'Reilly's treatment this week. Citing AIB's own bailout at the hands of the taxpayer during the credit crunch, Desmond said: "The Irish government showed sensitivity to the bank and the bank should have shown the same sensitivity to Tony O'Reilly."
In the wake of the near-collapse of the country's economy, it seems that honest dealing and straight talking are not enough.
ProfileProfile
Name: Sir Tony O'ReillyName: Sir Tony O'Reilly
Born: Dublin, 7 May 1936Born: Dublin, 7 May 1936
Education: Belvedere College, Dublin; University College, Dublin; Bradford UniversityEducation: Belvedere College, Dublin; University College, Dublin; Bradford University
Career: 1962-66, chief executive, Irish Dairy Board; 1967, joined Heinz; 1979, appointed chief executive; 1987, appointed chairman (departing in 1998); 1995-2009, chairman, Waterford Wedgwood; 1973-2009, director, Independent News & Media including spells as chief executive.Career: 1962-66, chief executive, Irish Dairy Board; 1967, joined Heinz; 1979, appointed chief executive; 1987, appointed chairman (departing in 1998); 1995-2009, chairman, Waterford Wedgwood; 1973-2009, director, Independent News & Media including spells as chief executive.
Family: Married, six childrenFamily: Married, six children
Interests: Rugby (played for Ireland 29 times and British Lions 10 times); tennis; artInterests: Rugby (played for Ireland 29 times and British Lions 10 times); tennis; art