The potentially shattered wedding plans of a bride and groom due to exchange vows tomorrow were saved today by a High Court Judge.
Mr Justice Michael White was assured by barrister Bernard Dunleavy that plans were being put in place to allow the couple’s reception in the award winning Ballykisteen Hotel and Golf Resort at Limerick Junction, Co Tipperary go ahead as planned.
The judge, following an application by Ulster Bank, appointed Jim Hamilton, of BDO, as provisional liquidator to the hotel where the unidentified couple’s reception is due to take place tomorrow afternoon.
The court heard that the hotel had not renewed its drinks license and had been operating without one — which put a question mark over the alcoholic content of drinks to toast the happy couple.
Mr Dunleavy, for the bank, said the South Tipperary hotel, which employs 80 people, has bookings for 75 wedding receptions in the coming weeks. A provisional liquidator was urgently needed to save the hotel’s reputation and ensure that wedding receptions could proceed.
He told Judge White the bank had petitioned the court to wind up the company after it had failed to meet a demand to clear an overdraft of €290,000. It was Mr Hamilton’s intention to “hit the ground running,” and keep the venue open for business.
Mr Dunleavy said investigations undertaken on the bank’s behalf revealed the hotel had been operating without a seven day publican’s licence or a dance licence. The provisional liquidator would be taking immediate steps to ensure those licences were renewed.
The Judge said he was satisfied to appoint Mr Hamilton, a chartered accountant, after being informed that the Ballykisteen Hotel Ltd was insolvent and unable to meet its debts.
The hotel has 36 bedrooms and 45 two and three bedroom self-catering residential lodges. It also had the benefit of an 18 hole championship golf course designed by professional golfer Des Smyth.
The court heard the company got into difficulties due to significant unpaid tax debts, internal partnership matters as well as issues with trade creditors. The appointment of a provisional liquidator had the consent of the hotel company.
Mr Dunleavy said the appointment was in the best interests of all parties including the hotel’s employees, creditors and customers. The provisional liquidator, who ultimately will sell the business, was further needed to secure the company’s assets, which included food and drink stored at the hotel.
Counsel said weddings in particular were an essential part of the hotel’s business, and the provisional liquidator’s appointment would ensure that this part of the undertaking could be preserved.
A hotel management company had agreed to take over the operation of the business on a short term basis.
Mr Dunleavy said the bank had provided the company with an overdraft facility of €200,000. As of May 16th last the account was overdrawn by €290,000 and cheques were being bounced and direct debits and standing orders not met.
A demand for immediate repayment of the €290,000 had been made by the bank and the company had been unable to meet it. Accounts revealed that company liabilities exceeded assets by €2.7 million and that it was clearly insolvent.
Ballykisteen Hotel Ltd’s directors are Paul O’Rourke, Gogginshill, Balllinhassig, Co Cork, and Patrick Murray, Cluain Na Croise, Crossbarry Co Cork, while Barry Hare, Main Street, Timoleague, is the company secretary.
Counsel said that in addition receivers had been appointed by Ulster Bank to Ballykisteen Hotel Co-Ownership which leased the company to Ballykisteen Hotel Ltd, as well as Ballykisteen Developments Partnership, which owns the freehold of the land on whichit is built.
The matter was adjourned to a date in June.