Bo Bo Catering Limited, which runs Silks Chinese Restaurant in The Mall, Malahide, and from which the company claims it has been locked out, is to ask the High Court next week for recovery of the premises.
Louis McEntagart, for Bo Bo Catering, told Mr Justice Tony O’Connor that a receiver, appointed over assets of the landlord, had changed the locks and closed down Silks on August 23.
He said Ken Fennell, of Deloitte, had been appointed receiver over certain assets held by Wan Loi (otherwise Derek Sung), which included Silks at 5 The Mall, Malahide.
Mr McEntagart said that 11 people have been out of work since the business was closed.
Kevin Lee, manager of the restaurant and a director of the business, told the court in a sworn statement that Bo Bo Catering had a lease agreement with landlord Wan Loi Sung until 2026, at €100,000 a year.
The deed had been varied, reducing the rent to €4,000 a month for a period of five years, with effect from January 1, 2014. In November 2015, Mr Fennell had been appointed receiver on foot of a mortgage over Wan Loi Sung’s assets.
Mr Lee said the receiver had caused a ‘For Sale’ sign to be erected outside Silks, as a result of which he had instructed Gaffney Halligan & Co, solicitors for Bo Bo Catering, indicating the company had not been aware of any purported sale of the premises.
He alleged business had been lost because of the sign.
The receiver had requested all rent be payable to him. An allegation had been made that rent and interest totalling €75,000 was owed to the receiver.
Mr Lee said Wan Loi Sung had been restrained by the High Court from entering or occupying the property.
He told the court that, in a letter, it was noted that Yasmin Sung was a 99% shareholder in and director of Bo Bo Catering and a family relative of Wan Loi Sung.
The receiver expressed, through his solicitors, concern that Yasmin Sung was acting in concert with Mr Sung, which was denied.
Mr Lee said the rent had been paid to Mr Sung and that he was required by a High Court order to account to the receiver for that rent. He denied any rent was outstanding.
Mr McEntagart said that rather than seek an interim restraining order, he was asking for the matter to be returned on notice to the receiver until next week.
© Irish Examiner Ltd. All rights reserved