An interim examiner has been appointed by the High Court to companies operating the well-known Dublin restaurant Dobbins and Becketts Hotel in Leixlip, Co Kildare. The businesses employ some 60 people.
The companies sought court protection due to cash flow difficulties caused by loss of business contracts and historic bank debts.
While Dobbins, St Stephen’s Lane, Dublin 2 and the ten bedroom Beckett’s Hotel & Restaurant have good reputations and a loyal customer base, the fact the companies’ assets were acquired at the height of the ‘Celtic Tiger; has left the group with a high level of debt, the court was told.
Mr Justice Brian McGovern agreed on Wednesday to appoint insolvency practioner Kieran Wallace of KPMG as interim examiner of four related companies Dobbins Wine Bistro Ltd, Dobbins Holding Company Ltd, Camrue Holding Company Ltd and Camrue Catering Ltd.
Survival
The judge said he was satisfied to appoint Mr Wallace after being informed an independent expert believed the companies have a reasonable prospect of survival if certain steps are achieved, including court approval of a scheme of arrangement with the group’s creditors.
As part of that scheme, the companies hope to restructure bank debt, pay a dividend to creditors, secure additional investment and enter into an open market lease for the companies’ premises.
The companies main creditors include the Revenue Commissioners and KBC Bank. Gary Flynn, Fontill Court, Rathfarnham, Dublin and Patrick Walsh, Templeroan, Rathfarnham are the directors of the companies.
Seeking court protection and an interim examiner, Ross Gorman, for the companies, said the directors were previously the restaurant manager and head chef at Dobbins and acquired the businesses in 2005 when property prices were at their peak.
They acquired loans from KBC of more than €3.2 million to buy the group and to carry out extensive works, counsel said.
Turnover
Turnover in the businesses increased in 2006 and 2007, dropped due to the financial crisis in 2008 and dropped year on year to 2013 putting significant cashflow pressures on the group, counsel outlined.
The group has been unable to pay back what is due to KBC and has not always been able to honour instalment arrangements entered into with the Revenue.
The loss of contracts to two other firms within the group, Cypress Catering Ltd and Cypress Events Ltd, which were liquidated in 2015, contributed to the financial difficulties.
Those companies had provided catering services at several greyhound tracks and Punchestown Racecourse, as well as to events at Dublin Castle and Farmleigh House, and were responsible for serving guests including Bill Clinton and Prince Charles. After losing contracts to provide catering at the greyhound tracks, the group was unable to fulfill its obligations to Punchestown.
The directors believe the firms can continue to trade profitably into the future once they can resolve their debt legacy issues, the court also heard.
