Settlement reached in action seeking to prevent advertisement of winding-up petition

A nursing home operator’s action seeking to prevent the advertisement of its winding-up petition has been settled and struck out.

Last week Co Galway-based Caiseal Geal Teoranta was granted permission to serve short notice on Lough Corrib Nursing Home Limited and its director, Richard Keane, of its intention to seek an injunction restraining them from advertising its winding-up petition.

Joseph Stanley, a director of Caiseal Geal, claimed Lough Corrib triggered a “nuclear” threat to wind up the company over a disputed debt. Mr Stanley said the move was “entirely improper and inappropriate” in circumstances where Caiseal Geal is not insolvent and is meeting its debts as they fall due.

He claimed the company does not owe some €178,000 Lough Corrib alleged was due to it, the demand for which appears to ground the petition.

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Instead, Mr Stanley said all three of Caiseal Geal’s directors, including himself and Mr Keane, had made personal loan contributions to the company to part-fund the construction of a new nursing home.

He alleged this personal input was being re-characterised as a loan from Lough Corrib.

When the case returned before the court on Friday, Mr Justice Senan Allen was informed an agreement had been reached and the action could be struck out without any orders being made.

Padraic Lyons BL, for Caiseal Geal, said he believes the winding-up petition will be withdrawn and struck out on consent when it comes before another High Court judge on Monday.

With consent from the parties, Mr Justice Allen struck out the injunction motion and the action.