Receivers to sell Tony O’Reilly’s Dromoland Castle shares

The Commercial Court has appointed receivers to take control and sell shares in Dromoland Castle owned by businessman Sir Anthony O’Reilly with an estimated net value of €1.9 million.

On Monday Mr Justice Brian McGovern appointed Luke Charleton and Damian Murran of EY as joint receivers over the 8,216 ordinary shares in Dromoland Castle Holdings Ltd, representing a 6.8 per cent holding.

It arises out of AIB’s continuing efforts to recover money from a €22 million High Court judgment against Sir Anthony and two of his investment vehicles in June 2014. The debt arose from a loan facility provided to Sir Anthony and also from guarantees he provided on separate facilities provided by the bank to Indexia Holdings and Brookside Investments.

Sir Anthony remains in debt for just over €16 million following the sale of various of his assets in recent years, AIB said. These included the January 2016 sale of property and lands at Shorecliffe House, Glandore, Co Cork for €1.2 million.

His residence at Castlemartin, Co Kildare, was also sold, with Indexia receiving €7.4 million from that, which AIB then received the bulk of to reduce the debt.

Some 8.9 million shares in Independent News & Media were sold for €1.5 million and further reduced the debt.

Substantial sums

In May 2015 AIB got a charging order over his Dromoland shares, which it says were held by the New York bank BNY Mellon National Association.

In an affidavit, AIB official Eamonn Conneely said he believes BNY received substantial sums from the sale of Sir Anthony’s Bahamas residence in 2016 and over which BNY held a second ranking charge.

Mr Conneely said the businessman had pledged the Dromoland shares to BNY, but once the Bahamian residence was sold, his debt to BNY had been repaid. It appears AIB now has first ranking charge over the Dromoland shares, he said.

He believes BNY continues to control the shares and would be willing to deliver the share certificate to AIB if the court appointed receivers.

The application to appoint the receivers was made by James Doherty SC, for AIB. The application was not opposed and there was no appearance on Sir Anthony’s behalf.

Mr Justice McGovern, as well as appointing the receivers, made orders directing BNY to deliver up the share certificate and entitling the receivers or AIB to receive payment of any unpaid dividends on the shares.