Galway businessman wins examinership appeal

The Hotel Meyrick in Eyre Square

Galway Bay fm newsroom – The Court of Appeal has confirmed the appointment of an examiner to seven companies controlled by Galway businessman Gerry Barrett.
Last month the High Court dismissed an application to grant the protection of the courts from their creditors to four firms connected to businesses including the G Hotel and the Eye Cinema.
The High Court did confirm the appointment of insolvency practitioner Mr Neil Hughes as examiner to three other related companies, involved in the operation and ownership of the 4-star Meyrick Hotel in Eyre Square.
Mr Hughes of Baker Tily Hughes Blake was appointed interim examiner to all seven companies, which are part of Mr Barrett’s Edward Capital Group, in August.
His appointment was sought by the companies after Deutsche Bank appointed a receiver over the firms, which employ more than 330 full time and part-time staff.
DB, which is owed more than €690m by the group, had opposed the examinership claiming it was an abuse of process and an attempt by the companies to renege on a 2016 debt settlement agreement which would have resulted in the sale of the group’s assets to reduce its debt to the bank.
That was denied by the companies, who argued that DB had breached the settlement agreement.
The companies appealed the High Court’s decision not to confirm an examiner to the four companies.
The three judge appeal court has allowed the companies appeal, and and examiner has been appointed to all seven firms.
In his judgment Mr Justice Hogan said he was satisfied that the companies had demonstrated that they have a reasonable prospect of survival as going concerns.
Mr Hughes has up to 100 days to put in place a scheme of arrangement with the firm’s creditors, which if approved by the courts will allow the firms to continue to trade as going concerns.