Courts / Galway / Report

Examiner appointed to Galway companies is allowed enter into agreement with investor

Date
2017-11-15
Stage
Appeal
Primary locality
Galway
County
Galway

Summary

The High Court has granted orders permitting the examiner of seven Galway companies controlled by Gerry Barrett to enter into an agreement with investor Waltzfire Ltd. Ms Justice Marie Baker granted insolvency practitioner Neil Hughes powers under the 2014 Companies Act to execute the deal, as the directors refused to sign the necessary documents. Hughes argued that without these powers, the investment proposal would be lost. The funds are intended to support the examiner's scheme of arrangement with creditors. Opposing counsel, Gary McCarthy SC, stated the directors withheld signatures due to insufficient information and noted that Besomhill Ltd, controlled by Mr Barrett, had submitted a competing bid. The judge ruled the application was properly brought, citing the time-sensitive nature of the examinership and the fact that the companies had known since November 6 that Besomhill was not the successful bidder. The court accepted an undertaking from the examiner not to sign the agreement until 12 midday on Thursday. Last month, the Court of Appeal confirmed Hughes as examiner for the group, which includes the Five Star G Hotel, Meyrick Hotel, and Eye Cinema. The companies sought court protection after Deutsche Bank appointed a receiver, claiming the group owed over €690m. Deutsche Bank had previously opposed the examinership, alleging it was an attempt to renege on a 2016 debt settlement, a claim denied by the companies.

Who, what, where, when and why

What: Report matter: Examiner appointed to Galway companies is allowed enter into agreement with investor. Procedural stage: appeal

When:

Why: Mr Hughes, represented in court by James Doherty SC, sought the order because he said the directors of the companies would not sign documents that would allow the investment agreement with Waltzfire to be executed. CNI source report

Places mentioned

Court Venue
  • The High Court
  • Court of Appeal
Secondary Mention
Facility
  • Drimbawn House
Residence
  • Drimbawn House Chestnut Lane
  • Galway

Topics

Stage Appeal

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