TD Faces Ruin And Could Lose Dail Seat As Bank Appoints Receiver

Developer and Wexford TD Mick Wallace faces financial ruin after ACC Bank appointed a receiver to recoup almost €20 million in debts.

The colorful Independent TD made no secret of his massive debts when he was running in this year's election.

But now he could lose his Dail seat if he is forced to declare himself bankrupt by banks seeking to get back the millions he owes them.

Under Irish law, a TD must vacate his Dail seat if he is declared bankrupt.

Wallace is believed to be in debt to the tune of around €40 million, with €18.3 million of that owed to ACC Bank.

The bank has appointed a receiver to take control of three of Mr Wallace's properties, including his flagship Italian Quarter on Dublin's Ormond Quay, an apartment complex near Croke Park and development land in Rathgar.

He has given the four banks to which he owes money personal guarantees and could become liable if a deal is not worked out.

Mr Wallace said much of the money he owes ACC is interest accrued and that he had been paying a whopping 20% on the loan since January 2009.

He said he was hopeful that another company he owns, Wallace Calcio Ltd, which employs 50 staff, could continue to operate the wine bars in two of the affected properties.

Mr Wallace said he believes the banks would gain nothing by seeking to have him declared bankrupt because he had no wealth outside his mortgaged assets.

He said it would have more to do with "badness" than economics if they went down that route.

"I've tried to build well - we were a very successful company for a long time," he said,

"We weren't bad, we weren't doing crazy things. We've made money every year for 20 years, employed a lot of people, paid our taxes.

"But the financial crisis arrived, completely undermined the value of our assets and we're no longer in a great place."

Wallace is one of the few popular property developers left in Ireland - he's got a long record of building developments higher in quality than many of his competitors, and he has done a lot of good community work in Wexford.

Now, his future as a public representative now hangs by a thread and lies in the hands of bank executives.