Hotelier’s firms to be wound up

THE High Court has made an order winding up three companies controlled by hotelier Hugh O’Regan.

Mr Justice Garrett Sheehan appointed Kieran Wallace of KPMG as liquidator following an application from the companies directors to have the firms Thomas Read Holdings, Dashaven and Clubko wound up.

The court heard that between them the three firms owe Irish Nationwide Building Society and Anglo Irish Bank more than €190 million. The firms’ total liability over assets is estimated at €122m.

Less than two weeks ago Mr Wallace was appointed as interim examiner of the firms, which sought the protection of the court in a bid to trade out of their financial difficulties.

Thomas Read Holdings is a holding company for a number of Mr O’Regan’s property companies and owns a property at No 4 Parliament Street in Dublin city centre, which housed Thomas Read Cutlers, at one time the city’s oldest continually run shop but which is now vacant.

A subsidiary of TRH operates the Morrison Hotel, on Dublin’s Ormond Quay, which employs 120 staff, under a hotel operating lease. Clubko owns No 8 St Stephen’s Green in Dublin city centre, which previously housed the Hibernian United Services Club. Mr O’Regan hopes to redevelop it as a private member’s club.

Dashaven is the company behind the Kilternan Hotel redevelopment, which is almost complete.

Bernard Dunleavy Bl for the companies informed Mr Justice Sheehan there was a realisation the companies could not be saved and the directors were seeking to have the firms wound up.

The court heard that INBS is owed more than €170m by Dashaven arising out of the redevelopment of the Kilternan Hotel.

Anglo is owed more than €22m in relation to TRH and Clubko, although Mr O’Regan is believed to have personal and corporate borrowings from the bank of approximately €80m.

Both Anglo Irish Bank and Irish National Building Society had opposed the appointment of a liquidator on the grounds that it was not necessary because they planned to appoint receivers to the companies.

Counsel for both financial institutions argued that the appointment of a liquidator would result in additional costs being incurred.