Sale of bar for €5m is blocked

The landlord of Dublin’s Café en Seine bar is refusing to consent to a bank-appointed receiver’s proposed assignment of a lease on the premises so it can be sold for €5m, it was claimed in the Commercial Court yesterday.

Pearse Farrell, who was appointed receiver by AIB in December 2009 to the bar’s operating company, Perfect Pies Ltd, is seeking a declaration that Chupn Ltd, a company of publican Louis Fitzgerald, is acting unreasonably in refusing to consent to the assignment under landlord and tenant legislation and under the a clause in the lease.

Yesterday, the case was admitted to the Commercial Court list despite opposition from Rossa Fanning BL, for Chupn, who claimed that such a transfer was premature.

Mr Farrell says the matter needs to be resolved quickly as the company to which it is proposed to assign the lease, Sequana Management Ltd, may rescind the agreement and the receivership of Perfect Pies could also be delayed and lead to further costs.

In an affidavit, Mr Farrell said on September 14 that an agreement was reached to sell the Dawson St bar for €5m to a company called Ardan Advisory Ltd and the lease would then be assigned to Ardan’s subsidiary, Sequana.

When asked to consent to the assignment, Chupn, through its solicitors, said it was not in a position to consider the request until it received proposals by Mr Farrell and Perfect Pies to address alleged breaches of the leases, in particular the question on dilapidations to the premises and its licences.

Mr Farrell replied the dilapidations were of a decorative or minor nature and did not need to be dealt with until the final year of the tenancy and, in any case, Sequana would assume all obligations for outstanding works.

There was further correspondence but Chupn failed to provide the consent required, Mr Farrell said.

Yesterday, Mr Fanning, for Chupn, said their opposition to the transfer of the matter to the Commercial Court was based on the fact that the banking arrangements “are unduly complicated” involving a Maltese company and are subject to New York law.

James Dwyer SC, for Mr Farrell and Perfect Pies, disagreed that it was premature and said his side had given as much information as possible to the defendant.

Mr Justice Brian McGovern said he had read the papers and he was satisfied to transfer the case to the commercial list.