Hotel operators’ parent company faces Nama objection

The High Court has reserved judgment on an application for examinership for companies involved in operating two hotels in Naas employing 250 people.

The National Assets Management Agency is neutral on the issue of appointing Kieran Wallace of KPMG as examiner to the hotel-operating companies but is objecting to examinership for their parent company, Faxhill Homes Ltd, which owes €77 million to the agency.

The four-star Kilashee House Hotel and Lawlor’s Hotel are considered to have a reasonable prospect of survival as going concerns, Mr Justice Peter Charleton has been told. Their operating companies were described as technically insolvent as a result of cross-guarantees provided by them concerning property purchases for certain planned developments of Faxhill which did not proceed and which the directors have now agreed to sell.

In opposing protection for Faxhill – owned by Co Kildare builder John Tierney, who owes some €16.4 million to Nama – the agency has expressed concern the examinership process should not be used as "a kind of receivership" just to sell off properties.

Mr Justice Charleton said he hopes to rule on the application today or early next week.