Rhatigan Property group bid to halt equity fund gaining control over Radisson Blu hotel
In Commercial Court proceedings, the Galway-based Rhatigan firms want orders restraining Beltany Property Finance Ltd from enforcing the appointment of a receiver over the hotel arising out of a letter for demand of repayment of €39.8m in loans and securities.
The case was admitted to the Commercial Court list yesterday by Mr Justice Brian McGovern on consent between the parties.
In an affidavit, Padraic Rhatigan, a director of the firms, said the loans, originally taken out in 2007 with Ulster Bank, were sold last year to Beltany, a subsidiary of the Goldman Sachs group,
Mr Rhatigan said discussions between Rhatigans and representatives of Beltany and Goldman Sachs took place but broke down.
A meeting last December in London with representatives of Goldman Sachs’ agents was “disheartening”, Mr Rhatigan said, because it became apparent to him the banking group did not have any intention of reaching a “commercially reasonable resolution”.
A few hours after that meeting, solicitors for Beltany wrote to the Rhatigans saying the hotel loan was payable unconditionally as of December 24 and the non-hotel facility was being treated as a demand loan, he said. On December 31, their solicitors were told joint receivers had been appointed over the Radisson Blu.
The Rhatigan companies had found an alternative funder to refinance the loans and as of last Tuesday, this was at an advanced stage.
Mr Rhatigan said Beltany was asked not to take any enforcement steps in relation to the appointment of the hotel receiver but it only agreed to a qualified undertaking.
It was clear the defendant had no intention other than implementing a “pre-determined enforcement strategy”. As a result, the Rhatigan side had no option but to bring proceedings, he added.
