G8 summit hotel will be unable to pay unsecured creditors €4.25m

The joint administrators of the five-star Lough Erne resort that last year staged the G8 summit believe that unsecured creditors owed £3.5m (€4.25m) from the hotel’s administration will not be paid.

KPMG were appointed as administrators by the High Court on foot of an application by Bank of Scotland to Castle Hume Leisure Ltd that ran the resort in May 2011.

The bank was owed £26.4m at the time by the company and the hotel remains up for sale.

According to the latest report on the progress of the administration, the administrators state that while they are unable to provide an estimate of the likely proceeds of the sale “we do not anticipate that sufficient monies will be realised to discharge all monies owing to the secured creditor”.

The administrators, John Hansen and Stuart Irwin of KPMG state that they “do not believe that there will be sufficient realisations to facilitate a distribution to unsecured creditors”.

World leaders, including US president Barack Obama, German chancellor Angela Merkel and Russian president Vladimir Putin descended on the Co Fermanagh resort for last June’s summit.

The latest administrators’ report filed with Companies House in the UK covers the period of the summit and the wider May 12 to November 11 six-month period last year.

The administrators have employed management firm, Tifco Hotels to manage the resort and Mr Hansen said that the G8 did have “a positive impact” on the hotel’s business for 2013, but declined to provide figures.

The 600-acre resort was developed by businessman, Jim Treacy.

Mr Hansen confirmed that the administrators remain in talks with a number of parties who have expressed an interest in buying the property.