16 parties interested in top hotel, court told

Sixteen parties have expressed an interest in investing in the five-star Muckross Park Hotel in Killarney, Co Kerry, run by businessman Bill Cullen and his partner Jackie Lavin, the High Court heard yesterday.

Mr Justice Peter Charleton was also told the interim examiner appointed over the hotel last month believes it has a reasonable prospect of survival as a going concern.

Counsel for the interim examiner, Gary McCarthy, said 16 credible parties have expressed an interest in the luxury hotel.

Mr McCarthy said the interim examiner had done a “significant amount of work” which had been positive and he concurred with the report of an independent accountant that the hotel has a reasonable prospect of survival as a going concern.

Last month, Mr Justice Charleton ordered that a receiver appointed by ACC Bank to the hotel be replaced by an interim examiner, Kieran McCarthy, of Hughes Blake Chartered Accountants.

Declan Taite, of RSM Farrell Grant Sparks, had been appointed receiver and manager to Muckross Park Hotel Limited, Boisdale Holdings Ltd, Silvermire Properties Ltd, and certain assets of Bill Cullen days before that.

Yesterday Declan Murphy, counsel for ACC Bank, said that when the case comes before the court again on Friday, the bank will argue that the court should decline to hear the examinership application. He said the bank opposed the application for a “variety of reasons”.

Its opposition hinges on the ownership of the hotel and lands which, counsel said, is part-owned by Mr Cullen and a company.

Appointing the interim examiner last month, Mr Justice Charleton said he was satisfied from evidence, including the report of an independent accountant, that this “fine hotel”, in which heavy investment was made in 2006 but which experienced problems after the economy crashed in 2008, has a reasonable prospect of survival provided certain conditions were met.

Those conditions incl-uded securing investment and approval of a survival scheme from creditors and the court. The court heard Mr Cullen and Ms Lavin had been told by an investor he was prepared to put €4m into the hotel.

The hotel — which employs 105 people and another 50 during the summer months — had hired a experienced new manager, implemented cost-saving measures and succeeded into diversifying into a number of areas including weddings. It had 56 weddings last year and another 65 booked this year and 25 so far for 2014.

Mr Cullen and Ms Lavin bought the hotel 20 years ago and extensively refurbished it in 2006.

The couple went to the court after ACC, owed €4.6m by companies running the hotel and another €4.6m by Mr Cullen, appointed Mr Taite as receiver. ACC’s debts are secured on the hotel companies assets, including the hotel and 24 apartments.

Mr Cullen is also owed €9.9m from the hotel but accepts that is “gone”, Ms Lavin said in an affidavit.

The case has been adjourned to Friday and the appointment of the interim examiner has been continued. The Revenue Commissioners and the receiver, Mr Taite, will also be represented at the hearing.