Foley loses legal action against receiver of pubs

The owner of Foleys and O’Reillys bars on Merrion Row in Dublin has lost his High Court attempt to stop a bank-appointed receiver distributing the proceeds from the sale of the premises.

Sean Foley, who together with his wife owns two companies which operated the premises, had asked the court to put a charge over the sale proceeds of the premises or make an order restraining receiver/manager David O’Connor dissipating the proceeds of sale.

In March 2013, one of the Foley companies won a High Court challenge to the appointment of Mr O’Connor.

However, Bank of Scotland, owed €5 million by two Foley companies, made new demands and the companies were wound up by order of the High Court on July 17th last.

In a decision yesterday, Mr Justice Sean Ryan rejected the action by Mr Foley against the receiver. He ruled that while Mr Foley’s company had sought and succeeded in freeing itself from the receiver, the property was not recovered and all the assets and liabilities of the company remained unchanged.

The company’s property may be sold and the bank, as holder of the mortgage, may receive the money, he said.