Survival scheme for Dublin pub companies approved
‘High likelihood’ Camden Street Taverns could survive
Ms Justice Mary Finlay Geoghegan said the pub companies’ survival scheme was also unusual as the trade creditors were being paid in full. Photograph: Eric Luke
Ms Justice Mary Finlay Geoghegan, while finding the examiner had breached duties to “act with fullest candour” arising from his initial failure to give the court full details relating to a proposed investment, said she would exercise her discretion to approve the scheme.
She took into consideration the number of jobs involved and the fact Vanguard Property Finance, a private equity fund which had acquired Flannery’s and initially bitterly opposed the scheme, had agreed to the modified version of it.
Vanguard acquired the Flannery’s €13 million loans from Bank of Scotland in 2012. The companies alleged that was done at a discount with the aim of calling them in and making a profit. The companies insolvency arose when Vanguard called in the loans in September 2013.
Even when there was bitter disagreement with Vanguard about previous survival proposals, the one matter on which all the sides agreed was there was a “high likelihood” Camden Street Taverns could survive, with positive consequences for Camden Street Investments and Camden Street Properties.
The survival scheme was also unusual as the trade creditors were being paid in full, the judge added, although 80 per cent of their debts would be paid on a deferred basis.