Hospital creditors seek advice from businessman

CREDITORS owed money on foot of the closure of a private hospital in Cork are seeking advice from a Dublin businessman whose company secured a €526,000 judgement against the developers in the High Court.

James Carroll, who runs Dublin-based Investor First, an investment advisory service, has been approached by a number of creditors left in the lurch following the closure last month of the €90 million Cork Medical Centre (CMC), set up by Sheehan Medical Ltd and run by CMC Medical Operations Ltd.

On March 28, Medical Operations chief executive James Sheehan wrote to employees to tell them the company was insolvent. Mr Sheehan is also a director of Sheehan Medical Ltd.

Investor First obtained a judgement against Sheehan Medical Ltd in the High Court last week for €526,350 on foot of a claim that they were owed fees for services provided in sourcing the building that housed the hospital.

Mediation in the case had taken place on February 7 following which Sheehan Medical Ltd agreed to pay Investor First three instalments totalling €525,350, the first of which was due on March 31. However, no payment was made and Investor First went to the High Court and secured its judgement. Mr Carroll has now instructed the company’s solicitors in Dublin, Crowley Millar, to petition the High Court for an order to wind up Sheehan Medical Ltd.

Yesterday Mr Carroll said he had been contacted in relation to CMC by “creditors and investors very concerned with what has happened, some of whom have approached me seeking advice”.

“They were aware that my company had secured a judgement against Sheehan Medical Ltd,” Mr Carroll said.

The future of the hospital remains under wraps. The landlord of the building, John Cleary, of John Cleary Developments in Mahon Gate outside Cork city, has refused to comment. However it is understood talks have taken place with private equity firm CapVest, majority stakeholders in the Mater Private Hospital.

CMC is fitted out with top-of-the-range equipment supplied and financed by Siemens under a lease agreement worth close to €8m, including VAT. The future of the equipment is also unknown.

In a statement yesterday, Siemens said its financial services arm “does not disclose details of our financial transactions as we regard such matters as commercially sensitive”. It is unclear who signed the agreement with Siemens — whether it was the operators of CMC or the landlord of the property — or where the liability lies.

It is understood CMC Operations Ltd is close to appointing a liquidator and that there are plans to sue the VHI. The closure of the hospital has been blamed by CMC on the refusal of the VHI to provide cover.

Creditors who wish to speak with Mr Carroll can do so by emailing to [e-mail]. He can also be reached at his office number, 01-2076470.