Two hotels in Naas employing more than 260 people received emergency High Court protection from their creditors yesterday evening, following an application from their owners who feared the National Assets Management Agency was about to appoint receivers.
Craigfort Taverns, which trades as the four-star Killashee House Hotel in the town, and Marchford, which trades as Lawlor’s Hotel on Poplar Square, now has until a May 7th hearing to prepare an application for the appointment of an interim examiner.
Examiner
A hearing to confirm the appointment is scheduled for May 14th. It is understood that the businesses are lining up Kieran Wallace of KPMG to act as examiner.
Both hotels are owned by Faxhill Homes, which is controlled by the Kildare builder Jack Tierney. He figured prominently in the McCracken tribunal inquiry into the affairs of former Fine Gael minister Michael Lowry and former supermarket chief Ben Dunne, after it emerged Faxhill had done building work on the homes of both men using incorrect invoices.
Mr Tierney is a director of both hotels, alongside his business partner Denis McCoy. It is understood the directors, whose loans are in Nama, became concerned the agency would move to take control of the hotels.
Fast-track
The hotels' owners prepared a fast-track court application over the weekend, which resulted in the granting of temporary court protection yesterday evening. The directors said the two businesses would trade as normal throughout the court protection and the examinership periods.
“It is important to point out that both hotels are currently performing exceptionally well, and we expect this to continue to be the case. In 2013, operational profits from both businesses were at in excess of €2 million,” said Mr McCoy.
Accumulated losses
Accounts for Marchford show Lawlor's had accumulated losses of almost €8 million at the end of 2012, after taking a €4 million asset writedown. Craigfort, trading as Killashee, made a €6.2 million loss in 2012 after a €7 million writedown.
Niall Quinn, the former Republic of Ireland football international, was formerly an investor in Killashee. Mr Tierney was a member of the eight- man consortium led by Mr Quinn that took control of Sunderland football club in 2006.
