Kelly property investment company wound up by court

The High Court has today made an order winding up property investment firm RQB which was set up by property developer Paddy Kelly.

RQB, (formerly Redquartz Boundary Ltd), Flemings Place, Dublin 4 was involved in a number of high-profile deals during the boom.

The petition to have the company wound up was brought by Boundary Services, an associated company, which the court heard is owed €2.499m.

The court also heard that NIB are the largest creditor and are owed €8.5m. Another significant debtor is Boundary Capital which is owed more than €6m.

Today Mr Justice Peter Kelly stated that that RQB is clearly insolvent and unable to pay its debts.

Last August NIB secured summary judgment orders in the Commercial Court for €8.5m against RQB over personal guarantees given for an overdraft facility for Mr Kelly's company, RQB Ltd.

The bank sought summary judgment orders against the company for €8,564,197 arising from an overdraft facility of December 2005 for some €12m made available to RQB for the purpose of acquiring certain properties "pending injection of investor equity".

Mr Justice Peter Kelly appointed Mr George Maloney of Chartered Accountants Baker Tilly O' Hare as liquidator to the firm which the court heard owes €21m.

Mr Maloney's appointment as examiner was sought by NIB over concerns it had about the relationship between the petitioner and RQB.

However the petitioner, Boundary Services had sought the appointment of another person to the role.

The Judge said that in a situation such as this the nominee of the largest creditor, in this case NIB, ought to be preferred.

Mr Justice Kelly also ordered that the company's directors file a statement of affairs.