A receiver has been appointed a receiver to the Thomas Read Group of pubs and restaurants, which employs 400 people, after the High Court heard earlier an investor had withdrawn support for a survival plan.
The receiver was put in place by the group's biggest creditor, ACC Bank, 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 Dublin businesses, 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 today had supported the examiner's plans.
A hearing to decide on the survival scheme began before Ms Justice Mary Finlay Geoghegan on March 13th last. 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 today, Ms Justice Finlay Geoghegan was told the Ulster Bank matter had been resolved.
However, this 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, as a receiver was being appointed, there woukld be no order for the winding up of the company notwithstanding evidence of insolvency. In the circumstances, she directed court protection should end from 3pm today.
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, which is owed €2 million; Allied Irish Bank (€4.6 million); Diageo Ireland (€1.1 million) and Lombard Ireland (€1 million).
The companies operate The Bailey, Duke Street; Searsons, Baggot Street; The Winding Stair, Ormond Quay; The Globe, South Great Georges Street; Rí Rá, South Great Georges Street; The Harbourmaster Bar, IFSC; Thomas Read, Parliament Street; Pravda, Liffey Street; Floridita, Abbey Street; Dawson Lounge, Dawson Street, Ron Black's, Dawson Street; Thomas Read, Smithfield; Lincoln Inn, Lincoln Place; and eight bars at Dublin Airport.