IRISH NATIONWIDE Building Society holds a legal charge over Hugh O’Regan’s interest in the freehold of the 138-bed, four-star Morrison Hotel in Dublin, according to an independent accountant’s report compiled last month for three companies that are being wound up.
This is just one of a number of securities held by Irish Nationwide in relation to Dashaven Ltd, one of three companies Mr O’Regan is seeking to wind up.
The others are Clubko Ltd and Thomas Read Holdings Ltd, which wholly owns the Morrison Hotel Ltd. The Morrison overlooks the river Liffey from Merchant’s Quay and was designed by John Rocca. It employs about 120 staff.
The High Court last week appointed Kieran Wallace of KPMG as liquidator to the three companies controlled by Mr O’Regan. This followed an application from the directors of the companies to have them wound up.
The court heard that the three companies owe Irish Nationwide Building Society and Anglo Irish Bank more than €190 million between them. The firms’ total liabilities over assets are estimated at €122 million.
Anglo and Irish Nationwide opposed the appointment of a liquidator on the grounds that it was not necessary because they planned to appoint receivers to the companies.
Irish Nationwide also has a mortgage over the Kilternan Hotel Country Club in south Dublin and has a legal charge over an adjoining 158-acre farm relating to Dashaven.
The building society also holds guarantees from Parkmount Taverns Ltd and Solarview Investments Ltd, and charges over the respective interests of these companies in the Kilternan property.
These details emerge in a report dated July 27th, which was compiled by accountant Paul McCann of Grant Thornton in relation to Darshaven, Clubko and Thomas Read Holdings. This report, which pre-dates the winding up proceedings, has been seen by The Irish Times.
The total debt due to Irish Nationwide from Darshaven Ltd is about €170 million, including rolled up interest, the report states. In April 2009, the building society agreed to make a facility of €180.5 million available to Darshaven to refinance the Kilternan project. This included €10.5 million to complete the hotel, leisure and campus aspects of the development. The report says Darshaven had intended to finalise the draw-down of the facility within “the coming weeks”. The Kilternan project could not be completed if the money was not drawn down by Darshaven.
“I understand that Irish Nationwide Building Society has issued a loan facility letter for €180.5 million to Dashaven Ltd and are fully informed of the current situation,” Mr McCann said.
In 2001, Dashaven purchased the former Kilternan Sports Hotel and Country Club. It subsequently bought adjoining land to bring its holding there to 330 acres.
Darshaven planned to redevelop it as a resort facility incorporating a 129-bed hotel, a theatre, conference facilities, music and yoga studios, golf club, swimming pool and aparthotel.
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