Examiner appointed to Galway hotel operator
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.