A RECEIVER has secured a High Court injunction restraining a businessman from preventing him taking possession of a hotel, pub and nightclub employing more than 100 people in Tallaght. The injunction continues pending the outcome of a full action over the receiver’s appointment.
Declan Taite, a receiver appointed by Irish Nationwide Building Society (INBS), secured the order against Laurence O’Mahony, Shrewsbury Road, Ballsbridge, Dublin, and three of his companies after alleging he was being prevented from securing the property.
Mr O’Mahony and another businessman, Thomas McFeely, Ailesbury Road, Ballsbridge, allegedly owe €59 million to INBS arising from various loans and guarantees.
Mr Justice Brian McGovern granted Mr Taite and INBS an injunction restraining Mr O’Mahony, the Tallaght Plaza Hotel Ltd, Codex Taverns Ltd and Oakleaf Construction Ltd preventing or obstructing the receiver getting into and securing the Plaza Hotel Complex, Belgard Road, Tallaght.
The judge said he was satisfied to grant the injunction because the receiver did not have control of the property and could not carry out his tasks.
Mr Justice McGovern also made orders preventing the defendants from entering upon the property and requiring them to deliver up the keys, alarm codes, locks and all other security and access devices.
Lyndon MacCann SC, for Mr Taite, said the INBS appointed his client as receiver last June. The appointment arose out of a €51 million loan given by INBS to Mr O’Mahony and Mr McFeely, in December 2005, to refinance borrowings on a mixed development in Tallaght.
Mr MacCann said the total amount outstanding was some €59 million with daily interest of €11,500 accruing. Repayments on the loans had been sporadic since April 2007 and none had been made since November last.
While there had been no issue between Mr McFeely and the receiver, Mr O’Mahony had resisted the appointment, claiming he had agreements with the defendant companies in relation to the property, Mr MacCann said.
Mr Taite had concerns for the business because he was not in control of the day-to-day running of the business, he added. Mr Taite was informed, as a result of management agreements signed in 2009, that Tallaght Plaza Hotel Ltd was the operator of the 122- bedroom hotel while Codex Taverns Ltd operated the adjoining licensed premises.
Oakleaf Construction Ltd also claimed it had a licence in respect of car-parking spaces on the property.
Mr MacCann said the management agreements did not prevent Mr Taite taking possession of the property.
Opposing the application, Alistair Rutherdale, for the defendants, said Mr O’Mahony had no difficulty having a receiver appointed over his and Mr McFeely’s interest in the property, but the receiver was not entitled to remove the two management companies in occupation of the hotel and the adjoining bar.
The orders being sought against his clients were mandatory in nature and should not be granted, Mr Rutherdale argued.
Mr Justice McGovern said both sides agreed there was a fair issue to be tried related to the appointment of a receiver in circumstances where management agreements exist. He was also satisfied damages would not be an adequate remedy as he “could not overlook” the “very substantial debt of almost €60 million involved”.
He was satisfied the balance of convenience lay in granting the injunction at this stage as, on the evidence, Mr Taite could not carry out his task as receiver “adequately or properly.”
While he was expressing no view on the agreement between the management companies and Mr O’Mahony in relation to the property, such arrangements could not impede the court from granting the orders sought, the judge ruled.
