Liquidators of nursing home and care facility seek €314k in fees
The company has for many years operated a disability care facility for legally blind persons as well as a nursing home on a campus beside St Vincent’s Hospital on Merrion Road. File picture: Pexels
A High Court judge has asked for more details concerning fees of €314,000 being sought by the liquidators of a company operating a south Dublin care facility and a nursing home.
Mr Justice Michael Quinn said today he would also like to know the position of the Department of Employment Affairs and Social Protection, owed more than €1m – relating to employee entitlements - on the fees application by the liquidators of St Mary’s Centre (Telford).
To allow for receipt of such information, the judge deferred to next week the hearing of an application by Neil Hughes and Dessie Morrow, insolvency practitioners, of Baker Tilly, for payment of €313,918, plus VAT, out of the assets of the company as the costs of their remuneration from the period of their appointment in July to October.
Sally O’Neill BL, for the Revenue Commissioners, owed some €200,000, said, following extensive communications and a small fee reduction, Revenue was not objecting to the liquidator's application.
The liquidation was “incredibly hands-on” given the nature of the company’s business, counsel said.
It did not seem there would be much left for creditors after the fees of the liquidators and legal fees are paid, she added.
Mr Justice Quinn said, while he knew it was not common for the department to participate in such hearings, he would like to know its position on the fees application given the sum owed to it.
Ross Gorman BL, for the liquidators, said they had been in correspondence with the department, it had received all the relevant paperwork and he was not aware of any reaction to that.
The judge asked that further contact be made with the department in relation to its position.
He also wanted information concerning to what extent the liquidator's remuneration is attributable to getting in assets and preserving them and how much is attributable to other matters.
He further asked that matters be clarified concerning whether substantial donated monies were free company monies. Mr Gorman said he understood the liquidators have been advised the monies at issue are free company monies and that had been confirmed by the relevant donor but he would take further instructions.
The judge adjourned the matter to next Tuesday to allow the matters to be addressed.
The company has for many years operated a disability care facility for legally blind persons as well as a nursing home on a campus beside St Vincent’s Hospital on Merrion Road.
It applied last July for an order winding up the facility, owned by the Sisters of Charity, because it would be unable to meet redundancy payments in excess of €950,000 arising from the liquidation. It also cited regulatory difficulties, concerns over future funding from the HSE and an inability to comply with HIQA recommendations to modernise its facilities.
In late September, the judge refused an application to discharge the liquidators and instead appoint an examiner to the company after finding there was insufficient evidence before the court to conclude the company had a reasonable prospect of survival.
The examinership application was brought on behalf of some of the centre’s residents and some current and former employees.
The judge noted all of the nursing home’s residents had left and 18 of the care centre’s residents remained and the HSE said the liquidators were in discussions about the HSE taking over the care facility for a transitional period, which could take up to 18 months to complete.
The Sisters of Charity had indicated their support should such discussions be successful and the appointment of an examiner would not aid that process and would add to the costs and the complexities of it, he said.
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