The High Court has appointed an interim examiner to the operator of a Dublin City Centre hotel and bar that employs more than 50 people.
Yesterday, Ms Justice Caroline Costello said she was satisfied to appoint experienced insolvency practitioner Tom Murray as interim examiner to JJ Red Holdings Ltd, the company that operates the Dublin Citi Hotel and the Trinity Bar & Venue at Dame St, Dublin.
The judge said she was satisfied the company was insolvent and unable to pay its debts, but an independent expert report presented to the court said if certain steps were taken, the company had a reasonable prospect of survival as a going concern.
The company, which has been operating a 27-bedroom hotel since 2006, has 40 full time and 14 part-time employees. It sought the protection of the court arising out of a dispute with its landlord Henciti Ltd, over claims for arrears of rent allegedly due.
Seeking Mr Murray’s appointment, Stephen Brady, for JJ Red Holdings, said proceedings arising out of the dispute over the rent arrears had been settled in July. As part of the terms of settlement, it had been agreed JJ Red Holdings would make a number of six figure payments to the landlord between July and the end of the year.
If the agreement was defaulted on, the landlord was entitled to reliefs including re-take possession of the premises.
While the first payment was made, JJ Red Holdings were unable to make the second payment. This, counsel said, was because his client believed it would be provided with the monies from its bank allowing it to pay the sums agreed.
However, for some reason only known to that bank, the money was not available.
As a result counsel said that in order to protect the business, which has been in existence since 2006, and maintain the jobs the company was seeking the appointment of an examiner.
The judge had expressed some initial concern about the application. However, after considering factors, she said she was satisfied to appoint Mr Murray as examiner on an interim basis.
© Irish Examiner Ltd. All rights reserved