Court confirms examiner for McWilliam Park Hotel in Mayo

An examiner has been confirmed for a Co Mayo hotel employing 122 people.

Ms Justice Marie Baker yesterday said that, for reasons including the number of persons employed by the McWilliam Park Hotel in Claremorris and its role in the local economy of a west of Ireland town, she would confirm examinership.

The hotel has confirmed bookings for 29 weddings in 2016, and a further 10 so far in 2017, Judge Baker noted.

Claremorris Tourism Ltd (CTL) and MOPB Developments, owner and operator of the hotel, had petitioned the High Court judge to confirm the appointment of Kieran Wallace of KPMG as examiner.

CTL and MOPB, led by local accountant Damian Prendergast, built the hotel in 2006 with funds from Ulster Bank and the aid of a tax-relief investment scheme backed by developers including Seamus Ross of Menolly Homes, Garret Kelleher of Shelbourne Developments, and David Andrews and Michael Tunney of Lioncourt Capital.

In her reserved judgment, Ms Justice Baker rejected arguments against examinership advanced by Coney Investments Designated Activity Company (a fund which acquired the company’s loans from Ulster Bank); the Revenue, owed some €735,000; and John Killeen, a shareholder and former director of MOPB who is suing it for some €974,775.

Coney claimed the hotel had no real prospect of survival as a going concern while Mr Killeen argued he could propose a genuine alternative to examinership which would be less costly and still maintain the hotel as a profitable business.

He also claimed the true purpose of the petition was to protect MOPB against litigation by himself and another shareholder.

The Revenue opposed examinership on grounds a very significant corporation tax liability wad disclosed only on the petition, the judge noted.