A director of one of the development companies building the Four Seasons hotel in Dublin at one stage had a call (claim) over £3 million of the £60 million which is to be paid to the company once the hotel is complete.
Financial adviser Mr Barry Kenny (41), is understood to have been due the money as part of a deal to buy out a prior interest he had in the development in Ballsbridge.
He could not be contacted last night.
Mr Kenny had an interest in a deal whereby he would buy apartments which would be on the top floor of the hotel building, once it had been built. However, when a number of private investors who were to buy the hotel discovered that apartments were to be on the top floor, they threatened to walk away from the deal.
The investors, called the Nollaig Partnership, had already lined up a deal whereby they would buy the hotel for in excess of £47 million. It was subsequently agreed that another investor, represented by a company called Stoneyview Ltd, would buy the extra floor of the building for in excess of £12 million.
At the same time, December 1997, Stoneyview and the partnership came to an agreement that the entire building would be run as a Four Seasons Hotel.
All the investors - Nollaig and Stoneyview - were being represented by accountant Mr Derek Quinlan, who was negotiating with ACCBank, the lead bank in the consortium of four financing construction of the building. Mr Quinlan had no interest or role in what happened to the £12 million once it was handed over.
Harvard Properties, the directors of which are Mr Kenny and the former ACCBank chairman, Mr Dan McGing, became the lead developers. It received the loans from the banks and is to sell the hotel to the investors when complete. The other development company involved is Simmonscourt Holdings Ltd.
It is understood that a charge or legal entitlement created by Harvard gave the banks first call on the £47 million coming from the Nollaig Partnership and £9 million coming from Stoneyview. The other £3 million was to go to Mr Kenny.
However this was later changed so that the entity entitled to the charge became an Irish registered company, Marlast Ltd, the directors of which are Mr Kenny and Mr McGing. The Marlast shares are held by Rhea Investments Ltd, of the British Virgin Islands.
The banks involved were ACCBank, Anglo Irish Bank, Scotia Bank and Bank of Scotland Ireland. As well as the charges covering £56 million, the banks had a deal with the Four Seasons group, whereby it provided a guarantee for any construction cost overruns up to £3 million.
The development has run into substantial budget overruns and delays and last week three of the four banks voted to appointed a receiver, Mr Pearse Farrell, to Harvard Properties and Simmonscourt Holdings. Bank of Scotland (Ireland) did not support the move and has instigated legal action against ACCBank over its handling of the deal. The bank is expected to defend itself against any claim.
