Liquidator appointed to operators of luxurious Waterford golf resort

A provisional liquidator has been appointed to two companies which own and operate the deluxe Waterford Castle Hotel and Golf Club.

The High Court move came yesterday as it emerged a Nama company is owed €33.8m by the companies.

The appointment of the liquidator will mean the complex at Little Island, Ballinakill, Waterford, can continue to trade.

The companies which own and operate the facility — which has been included in Conde Nast Top 25 Resorts in Europe 2012 — are “hopelessly insolvent” the High Court heard.

Ms Justice Mary Laffoy was told the Nama company was concerned about an increase in creditors arriving unannounced to the hotel seeking “self-help remedies”. One creditor had sent debt collectors and another had said he would block the ferry to access the island.

Alternate food suppliers have had to be sourced while tradesmen were no longer doing any work unless paid cash in advance.

The provisional liquidator would be able to stop creditors taking such actions and ensure the business could continue to operate, and all bookings, such as weddings, holidays, and golf outings are to be honoured.

Eighty staff are employed in the complex which includes a 19-bed hotel, luxury self-catering lodges, and a golf course on a 310-acre site.

The National Asset Loan Management Ltd, a company of Nama, petitioned the court to appoint Aiden Murphy as provisional liquidator over Newgold Ltd and Cendant Ltd, which owe NALM €33.8m.

The judge said the appointment was in the best interests of the creditors.

Counsel said this month NALM made a demand on the companies to repay the money owed. When the demands were not satisfied a statutory receiver was appointed, but was only appointed over the two firms’ fixed assets.

NALM did not have security over the trade of the hotel and golf club. It was not certain, in light of the receiver’s appointment, if the business would continue to trade, counsel said.

In light of that, counsel said NALM was seeking to have Mr Murphy appointed as liquidator in order to maintain the goodwill of the business at an important time of the year.

The matter will come before the court on Jul 31.