Return and tell me why not to jail you, judge tells director

A DIRECTOR of a company that owns a golf course and luxury holiday development in Co Cork has been ordered to appear before the Commercial Court to explain why he should not be jailed over failure to repay a €288,306 debt to a golf design company.

MF Irish Golf Design had earlier this month secured debt attachment orders related to bank accounts held by Kelcar Developments, in an effort to compel repayment of the debt relating to the course at Muskerry East, Blarney.

Last December MF secured an order enforcing an arbitrator’s award for €678,268 for work done on the golf course. After MF later threatened to bring a petition to wind up Kelcar if the monies were not paid, Kelcar paid about €400,000 last April but has failed to pay the remaining amount, which was due in October.

The proceedings relate to a €2.9 million contract of December 21, 2004, between MF and Kelcar for designing the golf course.

At the Commercial Court yesterday, Mr Justice Peter Kelly made an order requiring Frank McCarthy, a director of Kelcar Developments and related companies, to appear before the court next Friday to explain why he should not be jailed for contempt of court orders requiring payment.

Mr McCarthy has taken on personal liability for the sum still due, the judge noted. That debt has now been due for more than a year and he still had no clear explanation of matters.

Mr McCarthy was before the court to be cross-examined by Ross Gorman, for MF Golf, about financial matters concerning his companies.

Mr McCarthy told the court he and his brother Derek were directors of Kelcar and of other companies. He said he could not say for definite when the remaining €288,306 would be paid. The company was not in a position to pay and funds of €5.4m in a bank account could not be touched.

He said the company wished to sell assets, including a hotel, clubhouse and golf lodges, for about €20m but these had been on sale for some time.

Having heard Mr McCarthy’s evidence, the judge said he would grant leave for a motion to be brought on December 5 to have Mr McCarthy committed to prison for contempt. He also directed a firm of auditors to bring accounts related to Kelcar and the other companies to the court on that date.