High Court appoints liquidator to property company in first ruling of its kind

The High Court yesterday placed investment company Fuerta Ltd in liquidation in a ruling that is thought to be the first of its kind in the Republic.

Mr Justice Peter Charleton appointed Brian McEnery of BDO liquidator of Fuerta Ltd on the grounds that it would be "just and equitable to do so" rather than insolvency, which is the usual ground on which the courts wind up companies.

The appointment is thought to the first ever made by the High Court under section 213(f) of the Companies Acts. Justice Charleton considered the case for several days before making the appointment.

The court placed Fuerta Ltd in liquidation to protect the interests of a third party. The company was facing the possibility of being struck off, depriving it of the protection of limited liability, as it has not filed returns for a number of years.

However, Bank of Scotland, which had security for a loan over some of its assets, was also seeking a wind-up order against the business, and feared that striking it off could affect its ability to pursue the money due to it.

Instead it sought the liquidation under section 213 and asked that Mr McEnery be appointed a liquidator.

Consented to liquidation
It is understood that the directors and shareholders of the company, businessman Bryan Turley, best known for his involvement with property developer Sorrento Investments, Darina Heavey and John Ryan, consented to the liquidation.

The company was used to invest in Marlay Nursing Home in Dublin, and held the tax breaks associated with this. The bank had security over the proceeds of the tax breaks, which are due to run out shortly.

It was concerned that striking off the company could have implications for its security.

Neither the Rathfarnham-based nursing home nor its occupants will be affected by yesterday’s ruling.

Mr Turley is now working in New York. Sorrento Investments was briefly associated with the unsuccessful US-backed Maulabracka bid for Bank of Ireland in 2009.