A receiver has been appointed to take control of shares held in two companies by embattled developer Paddy Kelly.
National Irish Bank (NIB) brought the application to have the receiver appointed to receive Mr Kelly’s interest in 866,000 shares he holds in Club Company Holdings Ltd, with registered offices at Castle Royle Golf and Country Club, Reading, Berkshire, UK.
The shares are in turn held on trust for Mr Kelly by a company called Zarling Ltd.
NIB said it was bringing the application after judgment orders were made in its favour last August against Mr Kelly for guarantees he and two others gave for €8.5million and £1 million for an overdraft facility and loan made to a now wound-up company called RQB (formerly Redquartz Boundary Ltd) in December 2005. The £1 million was given to Mr Kelly to finance his investment in Club Company Holdings.
Keith Swaine, a solicitor for NIB, said in an affidavit, nothing has been paid by Mr Kelly to date in relation to that judgment order.
The shares in Club Company appear to be Mr Kelly’s only asset which is not subject to a prior security interest, Mr Swaine said.
The bank believes Mr Kelly’s interest in those shares should be charged in its favour and that a receiver should be appointed to take control of them.
Mr Justice Peter Kelly, who heard the NIB application on an ex-parte (one side only) basis, granted the application and appointed solicitor Jane Marshall of McCann FitzGerald as receiver to Mr Kelly’s shares in Club Company and Zarling.
He also ordered that Ms Marshall should receive all dividends or income from the shares.
The judge also granted an injunction restraining Mr Kelly, or anyone with notice of his order, from disposing or dealing in the shares without first giving notice to the receiver and the bank.
He also ordered the receiver to write to the secretaries of both companies notifying them of these orders and gave liberty to the companies to apply to discharge the injunction on notice to the bank and receiver.