Flatley hotel company wound up

A COMPANY formed nearly three years ago to operate a hotel in Co Cork was wound up by the High Court yesterday on the petition of dancer Michael Flatley who claims it owes him more than €2 million.

Mr Flatley, who was not in court for yesterday’s hearing, said on affidavit that he was the beneficial owner of the entire issued share capital of CH Management Ltd and was also a creditor in the sum of €2.22 million.

The company was incorporated in October 2002 in order to carry on the business of hotel and restaurant management. It had its registered office at Castlehyde Hotel, Fermoy.

The only issued share in the company is held by a solicitor as nominee for him, said Mr Flatley. The company traded on foot of a lease from a partnership which owns the hotel premises at Castlehyde, Fermoy.

Ms Justice Mary Laffoy appointed accountant Rory O’Ferall of Deloitte and Touche as official liquidator to the company.

The judge said she was satisfied that this was an appropriate case in which to make a winding-up order.

Mr Flatley, in his affidavit, said the company had never traded profitably and, in each year of its operations, had looked to him for financial assistance.

He had occasion to loan the company, either directly or indirectly, four sums: in 2002, in €63,486; in 2003, €902,879; in 2004, €1,129,864; and in 2005, €123,771.

The moneys which were advanced by him indirectly to the company related to company expenses and liabilities which were discharged directly by him.

Mr Flatley said that, due to the loss-making nature of the business, he had to lend the company a total of approximately €2.2 million.

The entire of that sum remained due and owing to him and he believed the company was not in a position to repay him the sums due to him. About the end of January/beginning of February 2005, the company ceased to trade due to its loss-making activities. All its employees had been made redundant.

Mr Flatley said that, with the exception of one or two items of furniture, the company no longer had any assets with which to trade or from which it would pay its debts and being wholly insolvent was not in a position to repay the debts due to him or to other creditors.

He had taken advice of solicitors and financial advisers and was advised that it was in the best interests of creditors and members of the company that it be wound up and, accordingly, in his capacity as creditor, he had issued the winding-up petition.

Earlier this year Mr Flatley issued a notice stating that he was petitioning the High Court to wind up CH Management Ltd.

The petition was lodged on April 15 last and was fixed for hearing for yesterday.

The notice invited any creditor of the company who wished to support or oppose the making of the petition to attend court.

When the case was called yesterday, Ms Justice Laffoy was told there was no notice of intention to appeal the application from any other contributor.