A HIGH Court judge has continued court protection for four companies in Galway businessman John Sweeney’s Black Shore group, which owns or operates a number of Esso service stations, Spar stores and the Courtyard Marriott Hotel in Galway.
One of the factors which persuaded him towards examinership rather than receivership was that the Courtyard Marriott was “bucking the trend” in performing quite well, with Fáilte Ireland expressing the view this was due to the management style of Mr Sweeney and his employees, Mr Justice Brian McGovern said.
This would change in a receivership where Mr Sweeney would lose effective control, he added.
Anglo Irish Bank, owed more than €20 million arising from inter-company guarantees involving three of the companies, had strongly opposed examinership on grounds including its “irretrievable” loss of confidence in Mr Sweeney. The bank has said it intends to appoint a receiver over the companies as soon as it can. Court protection applies for a maximum of 100 days.
Mr Justice McGovern said he was satisfied an independent accountant had provided evidence to show the companies have a reasonable prospect of survival if certain specified conditions, including securing investment, were met. The court had heard six expressions of interest had been received from potential investors.
The accountant’s view was also supported by interim examiner Michael McAteer, the judge noted.
At this stage, he was satisfied there was a reasonable prospect of survival of the four companies and he should exercise his discretion in favour of confirming the appointment of Mr McAteer as examiner of the four companies, he concluded. The companies are Sweeney Oil (Retail) Ltd; Sweeney Oil (Moycullen) Ltd; Sweeney Oil Service Stations Ltd and Slyne Properties Ltd.
Earlier this week, Mr Justice McGovern made an order for the winding up of Black Shore Holdings Ltd (BSH), the insolvent holding company for the group of Black Shore companies. Those companies include one which owns a 33 per cent stake in Dublin’s Shelbourne Hotel. The judge appointed Jim Luby as liquidator over BSH.
The liquidator to Black Shore Holdings was sought by Esso Ireland, owed €12.4 million, and the application was not opposed. A receiver was also appointed over Black Shore Holdings later on Wednesday by Anglo.
