Publican pursued over €9m guarantees

HOTELIER AND publican Hugh O’Regan is being pursued for €9 million arising from allegedly irrevocable guarantees provided by him related to a deal concerning the Harbourmaster pub and premises in Dublin’s International Financial Services Centre.

The proceedings against Mr O’Regan, Park Avenue, Dublin, were admitted to the Commercial Court yesterday by Mr Justice Frank Clarke who was told Mr O’Regan would be seeking to have the matter referred to arbitration.

Bernard Compton, for the plaintiffs, said they were seeking to enforce an indemnity and guarantee provided by Mr O’Regan and could not see there was any dispute which required the matter to be referred to arbitration. His clients wanted the matter dealt with as soon as possible, he added.

Mr Justice Clarke said he would adjourn the case for two weeks to allow Barry Mansfield, for Mr O’Regan, bring a motion for a stay on the action pending arbitration.

The action is by nine individuals: Paul McLaughlin, a businessman of Dartry Road, Dublin; David Leech, a businessman of Seafield Road, Killiney, Co Dublin; Fred Trenaman, an engineer, Shrewsbury Road, Dublin; Tony O’Donoghue, a businessman, Scholarstown Road, Rathfarnham, Dublin; Denis Boland, a solicitor of PV Boland Son, Newbridge, Co Kildare; Kevin O’Doherty, a solicitor of Charlotte Row, Gorey, Co Wexford; Kieran Nagle, a businessman of Carrickbrack Road, Baily, Howth, Co Dublin; Cathriona Hallahan, a businesswoman of Ballybetagh, Kilternan, Co Dublin; and Leo Maher, a businessman of Pinewood Grove, Renmore, Co Galway.

The plaintiffs hold a leasehold interest in part of the Harbourmaster pub premises referred to as the extension property, incorporating the restaurant and original bar areas and said Mr O’Regan holds the lease of the property known as the original Harbourmaster pub.

In February 1999, it is claimed, another company, Redfont Ltd, was given the leasehold interest in the extension property for a term from 1999 to 2029. Under a separate agreement also in February 1999, it is claimed the plaintiffs, a company, Chardermount Ltd, and Mr O’Regan entered into a “put and call option” agreement relating to the extension property.

It is claimed that agreement included an option for the plaintiffs to require Chardermount, in certain circumstances, to purchase their interest in the extension property.

It is claimed a receiver, Martin Ferris, was appointed last March over the assets of Chardermount and another company, Redfont Ltd. It is also claimed some €159,159 in rent was due under the lease on September 2nd last.

In those circumstances, a notice was sent to Chardermount calling on it to pay a purchase price of €9.1 million under the put option in the 1999 agreement.

It is claimed Chardermount failed to pay that sum within 21 days and, arising from that failure, the sum is now due and owing by Mr O’Regan on foot of his guarantee and indemnity. It is also claimed that guarantee was irrevocable and unconditional and, in those circumstances, he has no defence to the claim.