High Court extends protection for O'Regan companies

THE HIGH Court has continued court protection for another week to three companies controlled by hotelier Hugh O’Regan.

The companies had obtained an emergency order at a sitting of the High Court last Sunday morning which allowed them temporary protection against a move by a bank to take control of a number of properties. Mr Justice Vivian Lavan had appointed Kieran Wallace of KPMG as interim examiner.

Yesterday, Mr Justice Brian McGovern extended that protection for a further week to allow the parties involved time to respond to an independent accountant’s report on the companies which was not ready for last Sunday’s emergency hearing.

The court heard Anglo Irish Bank, which is owed more than €80 million by Mr O’Regan’s various companies, had moved late last week to appoint a receiver to two of them – Thomas Read Holdings and Clubko.

The bank claims the companies do not fulfil the criteria for the appointment of an examiner, but the companies say court protection will allow them trade out of their difficulties. A request by Anglo Irish to extend the interim examinership only to yesterday afternoon was rejected by Mr Justice McGovern.

Irish Nationwide Building Society, which is also owed money from Mr O’Regan’s redevelopment of the Kilternan Hotel and Country Club in Dublin, also opposed the extension.

Mr Justice McGovern said he would extend protection to August 6th, but it would be “absolutely necessary” that all responses from the various parties to the independent accountant’s report should be delivered by close of business the previous day.

Mr O’Regan is seeking an extension of court protection for up to 100 days through the examinership process which would give the companies time to restructure.

Anglo has agreed the receiver should stand aside pending the outcome of examinership hearing.

Thomas Read Holdings is a holding company for a number of Mr O’Regan’s property companies. Clubko owns No 8 St Stephen’s Green, Dublin. Dashaven is the company behind the Kilternan hotel redevelopment.