Lough Erne’s unsecured creditors ‘unlikely to be paid’

Administrators of Co Fermanagh resort also say there may not be funds to ensure full payment to secure creditor

Lough Erne: the 600-acre resort was developed by businessman Jim Treacy. Photograph: Peter Muhly/AFP/Getty Images

Lough Erne: the 600-acre resort was developed by businessman Jim Treacy. Photograph: Peter Muhly/AFP/Getty Images

Thu, Feb 20, 2014, 01:00


The joint administrators of the five-star Lough Erne resort in Co Fermanagh that last year staged a G8 summit believe unsecured creditors owed £3.5 million in the hotel’s administration will not be paid.

KPMG was appointed as administrator to Castle Hume Leisure Ltd, which ran the resort, on foot of an application by Bank of Scotland in May 2011. The bank was owed £26.4 million at the time by the company, and the hotel is still up for sale.

In their latest report the administrators say while they are unable to provide an estimate of the likely proceeds of the sale “we do not anticipate that sufficient monies will be realised to discharge all monies owing to the secured creditor”.

Realisations’
The administrators, John Hansen and Stuart Irwin of KPMG, also say they “do not believe that there will be sufficient realisations to facilitate a distribution to unsecured creditors”.

World leaders, including US president Barack Obama, Germany’s Angela Merkel and Russia’s Vladimir Putin, descended on the resort near Enniskillen for last June’s summit.

The latest administrators’ report, filed with Companies House in the UK, covers the period May 12th to November 11th last year.

In an interview yesterday, Mr Hansen said the G8 “was great for business and great for Northern Ireland’s profile”. The administrators have employed management firm Tifco Hotels to manage the resort, and Mr Hansen said the G8 did have “a positive impact” on the hotel’s business for 2013.

However, he declined to provide figures.

Guide price
The 600-acre resort was developed by businessman Jim Treacy and was first placed on the market in September 2012 with a guide price of £10 million.

It was withdrawn from sale after a fire at the property in November 2012, but was placed back on the market last May.

Mr Hansen confirmed that the administrators remained in talks with a number of parties who have expressed an interest in buying the property.