Ex­am­iner ap­pointed to Gal­way ho­tel op­er­a­tor

Irish Examiner - - Business - Aod­han O’Fao­lain

The High Court has con­firmed the ap­point­ment of an ex­am­iner to three com­pa­nies con­nected with the four-star Meyrick Ho­tel in Gal­way.

How­ever, Mr Jus­tice Tony O’Con­nor said he was not sat­is­fied to con­tinue the pro­tec­tion of the courts to four re­lated firms in­volved in the op­er­a­tion of other Gal­way-based busi­nesses in­clud­ing the Five Star G Ho­tel and the Eye Cin­ema.

All seven com­pa­nies are are part of the Ed­ward Cap­i­tal Group, con­trolled by busi­ness­man Gerry Bar­rett.

Deutsche Bank, which is owed more than €690m by the group, had op­posed the ex­am­in­er­ship.

Deutsche, rep­re­sented by Neil Steen and Paul Gal­lagher, ar­gued the ex­am­in­er­ship ap­pli­ca­tion was an abuse of process and an at­tempt by the com­pa­nies to re­nege on a debt set­tle­ment agree­ment which would have re­sulted in the sale of the group’s as­sets to re­duce its debt to the bank.

That was de­nied by the com­pa­nies, who ar­gued that the bank had breached the set­tle­ment agree­ment.

Fol­low­ing the court’s rul­ing Gary McCarthy, coun­sel for the com­pa­nies said their client would ap­peal the re­fusal to grant the four firms the pro­tec­tion of the courts.

The court agreed to put a stay in re­la­tion to the four com­pa­nies it has re­fused to al­low re­main in ex­am­in­er­ship to early next week.

All seven had sought the ap­point­ment of an ex­am­iner af­ter DB ap­pointed a re­ceiver over the firms, which em­ploy more than 330 full time and part time staff.

Last month the firms se­cured the pro­tec­tion of the High Court and in­sol­vency prac­ti­tioner Neil Hughes of Baker Tilly Hughes Blake was ap­pointed in­terim ex­am­iner over the com­pa­nies.

The mat­ter will re­turn be­fore the court later this month.

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