A RECEIVER was appointed yesterday to the Thomas Read Group of pubs and restaurants, which employs 400 people, after the High Court heard earlier that an investor had withdrawn support for a survival plan.
The receiver was put in place yesterday by the group’s biggest creditor, ACCBank, following the withdrawal of survival proposals for the bulk of the companies put together by an examiner appointed by the court last November. Court protection for the group, which operates 18 of Dublin’s well-known hostelries, had been extended since then to allow the examiner prepare the survival scheme.
The petition for examinership was brought in November by Guerneville Ltd, the parent company of the group which comprises Sharmane Ltd and a number of related companies.
A key part of the investment to secure the group’s survival was the involvement of a single investor who, until yesterday, had supported the examiner’s plans.
A hearing to decide on the survival scheme began before Ms Justice Mary Finlay Geoghegan on March 13th. ACC, which is owed €15.5 million, opposed the examiner’s proposals and asked that its own proposals be approved instead.
On Wednesday, the judge granted an adjournment to yesterday to allow discussions take place between the examiner and another large creditor, Ulster Bank, which had expressed concerns over how its €5.6 million debt would be addressed under the survival plan. When the case resumed yesterday, the judge was told the Ulster Bank matter had been resolved.
However, yesterday afternoon the judge was told the single investor was no longer prepared to be involved.
Gary McCarthy, for the directors of the parent company, told the court a board meeting had taken place over lunch and had resolved to ask the judge to appoint a receiver proposed by ACC.
The court heard the receiver would be appointed immediately. The judge was also told Ulster Bank was now supporting the receivership.
Ms Justice Finlay Geoghegan said that, as a receiver was being appointed, there would be no order for the winding up of the company, notwithstanding evidence of insolvency. She directed court protection should end from 3pm yesterday.
The companies in the group had an excess of €26.7 million liabilities over assets and, if wound up, there would be a debt of some €38 million, the court heard previously.
Among the group’s other large creditors are the Revenue (owed €2 million) and AIB (€4.6 million).
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