A dispute over the appointment of receivers to a hotel which is operated by companies of businessman and horse owner Conor Clarkson will not be heard in the High Court’s fast-track commercial division.
Mr Justice Denis McDonald, who heads the Commercial Court, refused to admit proceedings brought by joint receivers and the finance company that appointed them, over alleged interference with the receivership of the Powerscourt Arms Hotel, Enniskerry, Co Wicklow, and its operating company Bererycape Ltd.
Developer Conor Clarkson, who owned the 2005 Cheltenham Gold Cup winner Kicking King, is a director of Bereyscape.
Mr Justice McDonald adjourned the case to another division (Chancery) of the High Court next month.
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Capitalflow Group DAC and joint receivers Damien Murran and Julian Moroney of Teneo, have brought proceedings against Bereryscape, Cudsea Ltd and Eniflex Ltd seeking orders and declarations including that any lease on the hotel between Bereryscape and Cudsea is invalid.
It is claimed that Cudsea then leased the hotel to Eniflex which runs a pub on the premises and also has a government contract to accommodate Ukrainian refugees in the hotel.
Capitalflow and the receivers seek orders that Bereryscape and/or Cudsea and/or Eniflex cease trading there immediately and also deliver up vacant possession.
These proceedings follow separate proceedings issued in September by Bereryscape against Capitalflow and the receivers challenging the appointment of the receivers.
Capitalflow and the receivers had, earlier in September, demanded repayment from Bereryscape of a €1.15 million loan it had been provided with. There was no repayment and the receivers were appointed.
In an affidavit, receiver Julian Moroney said Bereryscape has sought to delay or frustrate the planned sale of the property for €2.5 million to a company called Manabard (Holdings) Ltd. This sale contract was entered into last July before the receivers’ appointment.
Mr Moroney said Mr Clarkson, along with US-based Dominic Brady are both directors of Bereryscape and Eniflex. Mr Clarkson is also a director of Cudsea and has been the person dealing with the receiver, he said.
Mr Moroney understood a lease was previously entered into between Bereryscape and Cudsea to run the premises, but not with Eniflex. He said the consent of Capitalflow was required for the creation of any other lease.
Concerns were raised that the pub element of the business has been operating without a liquor licence since September last year and the receiver asked that a copy of the current licence be provided. Information was also sought on the purported lease to Eniflex as well as details of existing insurance policies.
The documents were not provided but Mr Clarkson, as well as objecting to the appointment of the receivers, took issue with the purported failure of the receiver to provide “adequate documentation” showing the claimed security entitlements of the receivers and Capitalflow.
Mr Moroney said he has been informed the relevant documentation has been provided to Bereryscape.
Mr Clarkson also complained that Capitalflow/the receivers were harassing Bereryscape with a view to disrupting its business, which is denied by the plaintiffs.
Mr Moroney said as Cudsea no longer has any rights over the property, it was clear that Eniflex does not have a lawful entitlement to remain in occupation.
He is not aware of whether the premises is currently in compliance with planning or fire officer requirements which is of immediate concern given Mr Clarkson had said refugees were being accommodated there. He seeks an immediate cessation of trade until the publican’s licence and compliance with fire safety have been provided.
The company to which the hotel is to be sold, Manabard, has also brought proceedings seeking specific performance of the €2.1 million sale, Mr Moroney said.
