Legal costs eat into investment aimed at saving Odessa club
Main reason for costs due to complex investment process
Odessa restaurant. The court had heard that the insolvent Odessa club and restaurant owed €78,000 in VAT and €88,000 in PRSI and PAYE
More than half of a €250,000 investment aimed at saving the Odessa club and restaurant in Dublin will go on the legal costs to establish a plan to save the company under examinership, a judge was told yesterday.
Judge Jacqueline Linnane, who confirmed a modified rescue plan arranged by examiner Joseph Walsh of Hughes Blake Accountants, heard costs had already hit €146,622 before additional costs for yesterday’s court appearance.
Barrister Eithne Corry, counsel for Mr Walsh, said the main reason had been due to a complex investment process, the number of investors interested in funding a rescue plan and the extra due diligence by Mr Walsh. She said the examinership had stretched to its full 100 days
Judge Linnane drew attention to the fact that, together with a super-preferential payment of €10,000 to the Revenue Commissioners, the investment by newly incorporated company, Quanta Investments Ltd, would be significantly reduced.
Ms Corry said that in addition to the €250,000 investment Quanta would provide working capital of €50,000.
The court had heard from barrister Arthur Cunningham, counsel for Revenue, that the insolvent Odessa club and restaurant owed €78,000 in VAT and €88,000 in PRSI and PAYE.
Mr Cunningham raised concerns by Revenue of the appointment of Victor Temple Garner as a director.
Revenue told the court the Commissioners had losses of €688,000 arising from the collapse of companies in which he had directorships.
Barrister David Leahy, counsel for Mr Temple Garner, said Revenue had set out companies which failed “at the height of the post-Celtic Tiger” in which the restaurant trade in particular had been affected.