Creditors have appointed a receiver to one of property developer Greg Kavanagh’s companies in a dispute over a debt.
Anne O’Neill, who has taken legal action against Mr Kavanagh, has appointed John Healy of Kirby Healy Chartered Accountants as receiver to Ballycrag Developments Ltd, one of the property developer’s companies.
Ms O’Neill appointed the receiver in a dispute over a loan to Ballycrag Developments, secured by a charge over Wynnstay House in Clonskeagh, Dublin, which Mr Kavanagh bought in 2013.
Her husband, Robert Walsh, said on Wednesday that the receiver’s appointment was a “last resort solution”, decided on only after Mr Kavanagh had not met several assurances he had given that he would repay the debt, reported to be €6.4 million.
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A spokesman for Mr Kavanagh confirmed that the property developer, Mr Walsh and Ms O’Neill had been in dispute for around seven years over Wynnstay House and three other properties in which the parties hold interests.
“Settlement terms have been agreed in principle and Greg Kavanagh is working to close out the transaction in the coming weeks,” he said.
“The settlement provides for the striking out of proceedings, the release of security on Wynnstay House and Greg Kavanagh giving up his interest in the three other properties.”
The spokesman added that the appointment of the receiver was expected and was to facilitate the division of assets and the settlement generally.
Ms O’Neill and Mr Walsh will receive cash, thought to be around €3 million, as well as the three properties that Mr Kavanagh has agreed to surrender, if the settlement proceeds.
It is understood that Mr Kavanagh intends to develop Wynnstay House and will take control of it through a newly incorporated business. The Clonskeagh property is estimated to be worth more than €2 million.
Ms O’Neill’s lawyers told the High Court in 2020 that Mr Kavanagh owed her €6.4 million, which included interest dating back to 2014.
She originally loaned €975,000 in two loans 2013 to Ballycrag. The court heard that the debts were consolidated into a €2 million loan in January 2014 at 20 per cent.
However, Mr Kavanagh responded that he had a good defence and counterclaim to Ms O’Neill’s case. The issue is due back before the courts early in 2023.
Mr Kavanagh is a well-known figure in Dublin property development. He first caught the public’s attention by buying a series of development sites around the capital as a recession brought on by a financial crash bottomed out a decade ago.
