Hotel receiverships paying dividends

The receivership of the 50million five-star Lyrath resort hotel in Co Kilkenny is beginning to pay dividends for the Bank of Scotland.

That is according to new documents lodged with the Companies Office showing that the Bank of Scotland has received an interim

distribution of 750,000 through the receivership of the property.

Loans from the bank helped bankroll the development and opening of the Xavier McAuliffe hotel in 2006.

A self-made multi-millionaire, Mr McAuliffe

established the Co Kerry-based Spectra group and is part of the consortium that operates the GoSafe Speed vans.

However, in May 2012, the Bank of Scotland appointed Kieran Wallace of KPMG as receiver to the 137-bedroom resort spa hotel.

The first receiver extracts to be lodged showing how the business has performed show that the hotel generated revenues of 8.845million in the 12 months between May 25th, 2012 and May 24th, 2013.

The documents show that 750,000 has been paid to the secured creditor in an interim distribution.

The filings show that the receiver has spent 308,525 on management fees; 2.923m on wages; 3.41m to trade suppliers and 1.03m to Revenue over the 12 months.

Separate documents lodged with the Companies Office show that the Lyrath is not the only hotel to be performing strongly under receivership.

New figures show that the five-star Muckross Park

Hotel has recorded more revenues in six months this year than it did for the 12 months of 2011.

The figures show that the hotel in receivership recorded revenues of 2.88m in the six months between March and September of this year.

The revenues generated during the peak summer

period are more than 100,000 more than the 2.77m revenues the hotel recorded during 2011 — the last period in which the company filed accounts.

Last March, the former star of TV3’s The Apprentice, Mr Bill Cullen and his partner, Jackie Lavin lost control of the hotel in a court battle with ACC Bank.

Arising from the court battle win, ACC installed Declan Taite of Farrell Grants Sparks RSM as receiver.

The receiver’s extract lodged by Mr Taite with the Companies Office shows that the costs associated with

operating the hotel and the receivership total 2.43m, leaving a surplus of 442,293.

The costs are made up of 2.055m in ‘creditor and wage payments’; 152,335 to Revenue and 230,193 in ‘other costs’.

Mr Cullen — who also lost his motor business in October 2012 — ploughed around 10 million of his personal fortune into trying to make a success of the hotel that today employs around 100 people.

However, owed 9.2m by Muckross Park Hotel Ltd, ACC appointed Mr Taite as receiver on March 13th last. This was contested by Mr Cullen and Mr Taite was discharged as receiver two days later and an interim examiner was appointed.

Four weeks later, on application from the ACC, the High Court order discharging Mr Taite as receiver was vacated and the receivership resumed.

Speaking after the court ruling, Mr Cullen and Ms Lavin said that there were devastated by the loss of the hotel, stating that they felt that “with even more uncertainty, entrepreneurs have no future in Irish life”.

Mr Taite declined to comment.


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