Firm behind White's Hotel plan in liquidation

BALMAFORD LIMITED, the company established to finance and administer the redevelopment of Whites Hotel in Wexford between 2004 and 2006, has gone into liquidation.

Julian Caplin of FGS was appointed liquidator yesterday in the High Court.

Yesterday’s proceedings were initiated by building contractors Cleary Doyle, the main contractors on the € 42.1 million Whites Hotel redevelopment project.

Last year, they secured a High Court judgment against Balmaford in an uncontested case for payment of € 3,291,500 that was owed to them and 60 subcontractors and suppliers.

Cleary Doyle said the debt has still not been paid, prompting the company to take further legal action. Last October, a group of sub-contractors picketed outside the hotel demanding payment.

The liquidation of Balmaford occurs less than two weeks after a receiver was appointed to Whites, and less than a week after the Maldron Hotel Group took over the management of the hotel.

Although Balmaford shares the same shareholders and directors as Whites Hotel Ltd, the hotel’s receiver, Kieran Wallace of KPMG, says the liquidation will have no impact on the operation of the hotel.

“Although Balmaford is a subsidiary company of Whites Hotel Limited, it was a special purpose-vehicle, set up for the redevelopment of the hotel, and has nothing to do with the operations of the hotel. It is a separate legal entity.”

Mr Wallace said he was very confident the hotel will continue to operate successfully under the new management.