Lynch Hotel Group no longer in examinership

THE LYNCH Hotel Group has successfully emerged from examinership, a High Court judge has ruled.

At a confirmation hearing in the High Court, Ms Justice Mary Finlay Geoghegan ruled yesterday in favour of proposals put forward by examiner Michael McAteer of Grant Thornton.

As part of the restructuring plan, 15 per cent of debts to preferential creditors will be paid, while 10 per cent will be paid to unsecured creditors. The company’s main creditors include the Revenue Commissioners, AIB, Bank Of Scotland (Ireland), Bank of Ireland, Diageo Ireland and Celtic Linen Ltd.

The group also announced the appointment of financial consultant Paul Talbot to the board.

In July the company entered voluntary examinership after it found itself unable to pay its debts of almost €23 million. In addition, it had sustained a net loss of €10 million in disposing of a number of hotels, including the Green Isle Hotel in Dublin and Hayden’s Hotel, Ballinasloe, Co Galway.

The group, which is owned by Ennis-based businessman Michael Lynch, employs 450 full-time and 50 part-time workers.