No white smoke yet on Citywest
The proposed €30 million sale process for the Citywest hotel looks likely to run for a while yet.
Citywest hotel: sales process looks likely to run for a while yet
A bit like the Iraq War, which only really got going once victory was declared, the proposed €30 million sale process for the Citywest hotel looks likely to run for a while yet.
As revealed around here, the receivership sale of the sprawling complex developed by the late Jim Mansfield has recently hit a bag of snags.
The contracted buyer, BSQ Investments, has so far failed to close the deal and the receiver, Martin Ferris, has launched a lawsuit to try and get the thing over the line.
That case is up for mention in the High Court on Monday, where Ferris will seek to have it admitted to the fast-track commercial list.
But there is another High Court case in the pipeline that may also have a bearing on how this whole Citywest business finishes up.
Ferris is the receiver to Citywest via Mansfield’s company HSS, on foot of security given to Bank of Scotland (Ireland). A separate Mansfield family-controlled company called HSS Developments, which was never in receivership, was dissolved in 2012.
Ivor Fitzpatrick solicitors has now petitioned the High Court to have HSS Developments readmitted to the register of companies.
Apparently, this company could yet kick up a stink over the receivership sale because it allegedly retains ownership of a sewerage pipe across the N7 that is being used by the hotel.
It is also claiming rights to the carpark used by the convention centre. In other words, HSS Developments will want a chat with any prospective buyer of Citywest.
Truck and Machinery Sales, another Mansfield company that shares an address with HSS Developments, has also written to BSQ threatening the law over the use of the citywesthotel.com website address. It claims “an employee” of HSS Developments registered the name, and that the hotel now in receivership can only use it with that employee’s say so.
And yet another insurgency group, this time calling itself the “Saggart Planning Group”, is also threatening BSQ with all sorts because of alleged planning breaches it claims are being perpetuated at the hotel.
I hear a sneaky rumour that HSS Developments has held talks with a prospective US-based rival bidder to BSQ, which wants to turn Citywest into a live music venue.
HSS could even sell the bidder its rights to its claims regarding Citywest.
There may be trouble ahead . . .