THE COMPANY behind disputed plans for a €200 million luxury resort on a 650-acre site at Kinsale Harbour, Cork, is on the brink of liquidation.
The Kinsale Harbour Resort Developments plan was the brainchild of key investor Seán Rainey. The firm won support for the project from golfing luminary Ernie Els, Hyatt International hotels, PGA Golf, Minister for Foreign Affairs Mícheál Martin and Cork County Council.
However, the development was delayed when a local objector challenged it in the High Court and the Supreme Court. A Supreme Court ruling last year prevented the objector, Thomas Harding, from bringing a judicial review case aimed at overturning planning permission for the project.
Official notices show that the company and a related entity, E-Stock Ireland, have asked creditors to nominate a liquidator at a meeting on Friday week. Mr Rainey, the largest individual shareholder in Kinsale Harbour Resort Developments, owns most of the shares in E-Stock Ireland.
Although the immediate reasons for the liquidation are unclear, Kinsale Harbour Resort Development’s auditors recently pointed to a “material uncertainty” that may cast doubt over its ability to continue as a going concern. A company director and one of its advisers did not return calls.
The firm’s main bank is ACC, whose parent Rabobank is aggressively tackling problems in its Irish loan book. ACC’s spokesman declined to comment on the bank’s relationship with Kinsale Harbour Resort Developments.
The company’s latest abridged accounts – filed in April, for the 2007 fiscal year – show that ACC holds “first charge” over “all lands” situated at Kinsale. Accounts for the previous year say ACC had a “charge” over “lands” at Kinsale.
In 2007 the company had bank loans for €3.21 million falling due within a year. The firm also had loans from E-Stock Ireland for €3.83 million and loans from Mr Rainey for €2.44 million. Loans for €1.6 million were outstanding from shareholders Paul O’Connor and Andy Neave, and a loan for €2.35 million was outstanding from shareholder John Casey.
Mayor of Kinsale Tomás O’Brien said: “I remember when it was announced, it was estimated it would create up to 800 jobs – 350 full-time positions with another 450 indirect jobs and 300 people being employed during construction, so it’s very disappointing on several fronts.”
