A High Court judge yesterday made an order permitting a receiver to manage and operate the Holiday Inn Hotel at Pearse Street in Dublin.

Mr Justice Finnegan directed that Mr Pearse Farrell of Farrell Grant Sparks, chartered accountants, suing as receiver and manager of Cristeeg Catering, with registered offices at Blainroe House, Blainroe, Co Wicklow, be allowed manage the Holiday Inn.

The order was against Millura Enterprises, with registered offices at Northumberland Road, Ballsbridge, Dublin and Mr Kent Gross, a director of Cristeeg, with an address at the Holiday Inn Hotel. The hotel is owned by Tara Virgin Resorts Inc, and was operated by Cristeeg under licence from Bass Hotels and Resorts Inc.

The court was told that Cristeeg appeared to have disposed of its interest in operating the hotel for a "valuable sum" to Millura, a company about which little was known.

Ms Mary Irvine SC, for the receiver, said Mr Farrell was appointed by Smurfit Finance (a subsidiary of Equity Bank) as receiver under powers contained in a mortgage debenture between Cristeeg on the one hand and Smurfit on the other.

But last Friday Mr Farrell had been refused access to the premises in his capacity as receiver although he was not physically obstructed. On arrival at the Holiday Inn, Mr Farrell was told that Cristeeg was no longer the operator of the hotel, that it had been thrown out for failure to comply with its obligations, and that this function had been taken over by Millura.

The consent of the landlords had not been obtained to this reassignment of the leasehold interest, counsel said. There was, therefore, no basis upon which Millura was permitted to operate the hotel. Such a function must rest with the company over which he had been appointed receiver and manager. In an affidavit, Mr Farrell said he was extremely concerned at the manner in which the business had been, and was at present being, run. Cristeeg had been in default to its landlord and to the appointing bank (Smurfit) for some considerable time. As of March 9th last, Cristeeg was liable for more than £268,000 to Smurfit.

"I am even more concerned now to hear that payments are being made out of cash takings without any formal system of control or supervision," he said.

Mr Justice Finnegan said his order giving the receiver access to the hotel would stand until Monday, when the case would again come before the court.