Grehan application over receivers fails

THE HIGH Court has dismissed an application by two companies of developers Ray and Danny Grehan for an injunction preventing …

THE HIGH Court has dismissed an application by two companies of developers Ray and Danny Grehan for an injunction preventing the National Assets Management Agency from appointing receivers to the Glenroyal Hotel and leisure centre in Co Kildare.

Glenkerrin Properties Ltd and Glenroyal Leisure Ltd brought proceedings against the agency and accountants Paul McCann and Michael McAteer, who were appointed receivers earlier this year.

The companies allege there is no lawful basis for the appointment of the receivers of the Maynooth-based hotel and leisure centre, and sought injunctions, pending the outcome, restraining them operating the businesses.

In opposing the action, the agency said it was entitled to make the appointments and rejected arguments made on behalf of the companies, which the court heard are “hopelessly insolvent”.

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In his judgment yesterday, Mr Justice Daniel O’Keeffe dismissed the application for an injunction.

The judge said he accepted Nama’s argument that an injunction should not be granted on the grounds the companies had failed to provide the court with information in relation to their insolvency and their inability to have funding required to carry on their business. There had been “non-disclosure to a material degree” of financial information in relation to the companies. Such information, he said, was “necessary to assess the commercial and financial realities before any injunctive relief is made”.

The companies claimed that as a result of Nama’s decision, the goodwill between the companies and its suppliers and customers will be damaged, placing the future of the business in question.

The judge made the matter returnable before the High Court later this month.