Provisional liquidator to take control of Custom House Capital

A provisional liquidator is to take control of a company formerly linked to wound-up investment firm Custom House Capital.

CHC managed more than €1bn for its clients but was described by a High Court judge "as a sort of Irish ponzi scheme" when it was wound up last year.

The misuse of clients monies led to the demise of CHC last year.

An investigation also led the Central Bank to suspend the business activities of a related firm Custom House Capital Investment Property plc.

The High Court has heard the firm remains solvent but was mismanaged and is beyond repair as a regulated investment company.

Newly appointed directors had their hands tied by the Central Bank restrictions, which stopped them freely negotiating with two German banks that are threatening to foreclose on property assets in Paris and Germany valued at €80m and €68m respectively.

The directors fear that could lead to a firesale and have successfully applied for the appointment of provisional liquidator Billy O'Riordan who will be able to negotiate with the banks without the same constraints.