THERE WAS anger and suspicion voiced at a two-hour creditors’ meeting in the Citywest Hotel in Saggart, Co Dublin, yesterday, but little hope that anyone there was going to see the money they were owed.
Close to 100 creditors of HSS turned up to a meeting which was chaired by a subdued Tony Mansfield, son of Jim Mansfield, the founder of the business.
Solicitor John White, of Beauchamps solicitors, explained that the shareholders of HSS, an unlimited company, had earlier decided to put the company in liquidation.
Mr Mansfield stood and read a short statement. He said HSS had acquired part of the Tassaggard Stud in 1990 and began a development that now included hotels, golf courses and leisure, convention and education centres.
He said the construction of the new convention centre had been delayed “as the county council omitted to give certain information to An Taisce”.
In the meantime, an extra 270 bedrooms had been built for the hotel. Because the convention centre was not completed on time, the hotel’s profits were hit.
Bank of Scotland Ireland “verbally agreed” to fund the convention centre but towards the completion of the work it “became apparent that funding from the bank was not forthcoming”. The downturn in the economy and other factors impacted on the group’s finances and the bank’s support ceased in July 2010.
The Mansfield family was co-operating with the bank’s receiver, Martin Ferris, he said. “It is with great regret that we have taken the decision to look for the appointment of a liquidator to the company that we have spent over 20 years building up.”
The family had hoped the convention centre and the new educational centre would allow HSS trade its way out of its difficulties but the lack of bank support and the receiver’s appointment “did not allow for same to happen”.
Three representatives of the company attended the meeting, Mr Mansfield, Mr White and Richie Mahon, the former financial controller of HSS.
The amount owed to Swift Concepts Ltd (€24 million) was the largest of the non-bank debts and the meeting heard Mr Mansfield was acting as that company’s proxy. However, the meeting was assured there was no link between the Mansfield family and Swift Concepts.
At times, creditors took exception to Mr White answering questions rather than Mr Mansfield or Mr Mahon. They queried how the Mansfield family were not liable for the HSS debts when the company did not have limited liability.
They also queried whether their services or supplies had been accepted at a time when the company should have been aware its banker was withdrawing support.
Mr Mahon said the company still believed Bank of Scotland Ireland would support it up to the date of the appointment of the receiver on July 6th.
In response to a representative of the Revenue Commissioners Mr Mahon said there were no current directors’ loans though there had been “up to about 2009”.
When a creditor asked Mr Mahon if he expected the creditors would get “one penny”, he said the Mansfields hoped the creditors would get some return. Mr White said it all depended on the value achieved for the company’s assets.
A creditor who lost his job on Tuesday said it was unfair that the Mansfields were protected because of their company structure involving the Isle of Man. This was “at the expense of the creditors,” he said. “There is a massive feeling of mistrust and disbelief.”
The meeting was told that the liquidator, George Maloney, would have to file a report within six months to the Office of the Director of Corporate Enforcement, and this report would have to deal with such matters as directors’ honesty and responsibility in company law terms, and the liability status of HSS.
