AN EXAMINER was appointed by the High Court yesterday to she company developing the leisure complex at the former Iveagh Baths in Bride Road Dublin. A Dublin accountant Mr Jason Sheehy, was appointed examiner to Colmant.
A Colmant creditor, International Leisure Group of North Wall, Dublin, brought the petition. Mr Robert Dolan of Sydney Parade, Dublin, is IEG managing director. His firm claims to be owed £80,000 and to have acted as consultant and designer to Colmant.
Before the appointment, the President of the High Court, Mr Justice Costello, rejected applications opposing the petition. The objections were on behalf of Mr Barry Forrest, receiver to Colmant and Anglo Irish Bank Corporation which appointed Mr Forrest.
Mr Bill Shipsey SC, for the petitioner, read the ILG petition which stated the facilities at the leisure centre were 70 per cent completed. Colmant owed Anglo Irish Bank £640,000. In addition, unsecured trade creditors were awed £230,000 of which £65,000 was due to ILG. Colmant would need to spend a further £390,000 to complete the project.
The petition claimed there had been unsuccessful negotiations with Anglo Irish Bank for funds and with IEG and a Mr Hugh O'Regan as potential investors.
It was alleged the petitioner and Mr O'Regan were "extremely aggrieved" at their treatment by Anglo Irish Bank and the receiver. ILG thought it had a binding agreement with the bank for the sale of Colmant assets to a new company to be formed by ILG and that the bank would make finance available.
ILG was told on January 30th that Mr Forrest was appointed receiver and that he sold the assets on February 1st to Mr Sean Quinn. It was essential for an examiner to be appointed pending finality of negotiations between Mr O'Regan and ILG.
Mr Ian Finlay SC, for the" receiver, read an affidavit by Mr Michael Ryan, solicitor, Cavan, acting for Quinn Public Houses, and instructed to complete purchase of the Iveagh Fitness Centre, its assets and liabilities from the receiver for £700,000. The money had been paid in full.
Mr Justice Costello referred to the absence of a written contract with Quinn Public Houses. If the contract had been made orally he would have thought the express terms of the agreement between the receiver and purchaser would have been set out. In their absence he did not think he should be precluded from making the order to appoint an examiner.