Proceedings against Simon and Christian Stokes over their operation of Dublin’s Bang Café, which has been wound up with debts of €2.4 million, have been adjourned to May to the High Court.
The brothers consented earlier this month to orders under Section 150 of the Companies Act restricting them, for a period of five years, acting as directors of companies unless those companies meet minimal capital requirements.
Tom Murray, liquidator of Mayfair Properties Ltd, the company which operated Bang Café, has yet to indicate to the court if he intends to proceed with an application for orders under Section 160 of the Companies Act disqualifying the brothers from involvement in the management of any company on grounds of unfitness.
When the case was mentioned today, Richard Burke, for the liquidator, told Mr Justice Brian McGovern the sides were consenting to the Section 160 matter and related issues being adjourned to the High Court to May 16th next to facilitate exchange of legal documents.
In court documents, the liquidator has complained the brothers spent almost €146,000 of the restaurant company’s money over an 18 month period on their own personal expenses, including for hotels in London, Denmark and Barbados.
Mayfair was incorporated in 1997, began trading in 1999 and operated Bang Café at Merrion Row, Dublin until it was wound up in January last year.
In an affidavit, Mr Murray outlined several concerns about the operation of Mayfair including outstanding payments to the Revenue; history of under-declaring Revenue returns; personal use of company credit cards; failure to liquidate the company on a timely basis; inter-company loans; use of the credit card machine or another related company, Missford Ltd; cash management; failure to submit accounts to the Company Registration Office and failure to implement changes in tax legislation.
Mr Murray said the outstanding Revenue liability is €477,996 and he believed the directors improperly used monies owing to the Revenue as a means of financing the business.
He also believed the company from January 2007 to June 2009 paid some €127,275 for Ulster Bank Business Credit Cards, and from June 2008 to June 2009, paid €19,851 in Bank of Ireland business credit cards. Credit card statements showed significant personal use of the cards by the directors accounted for the vast majority of the monies spent, he said.
Credit card statements between January 2007 and June 2009 showed large sums of Mayfair monies were used to pay personal bills incurred by Simon Stokes at hotels, restaurants and a range of stores in Ireland and abroad, the court heard. These payments included €2,421 to the Coral Reef Club, Barbados; €4,425 to the Gucci Store in New York; €2,000 to the Professional Golfers Association in Blackrock; €2,621 to Brown Thomas in Dublin and €6,494 to Pia Bang Interiors in Dublin.
Credit card payments in the name of Christian Stokes between January 2007 and June 2009 included a payment of €3,835 to Ashford Castle; €2,091 to Maroma Resort & Spa and €2,011 to the Skovshoved Hotel, Denmark.
Mr Murray also said the company should have been liquidated earlier as, from 2005, the directors did not financially support the company and in fact drew directors loans from it.