Almost 90 unsecured creditors of the insolvent Odessa Club will receive just 10 per cent of the sums owed to them under a proposed rescue plan for the Dublin nightclub and restaurant.
A creditors’ meeting for the company, Odessa Club and Restaurant Ltd, will take place next Tuesday. Creditors will vote on a scheme of arrangement proposed by the examiner appointed to the company.
Quanta Investments Ltd, a newly incorporated company, has agreed to invest €250,000 in the club to fund the examiner's scheme of arrangement.
If the scheme is approved, the directors of Odessa, Eoin Foyle and Peter O'Kennedy, will resign their positions, while Victor Temple Garner and Donal O'Donoghue will be appointed as directors.
Mr Garner, a chef and restaurateur, is a director of Superford Ltd, the company behind Dublin restaurant San Lorenzo’s. He was previously a director of the Malting Tower Bar and Grill, and the Beacon South Bar and Restaurant. Mr O’Donoghue is also understood to be a restaurateur.
Odessa sought court protection from its creditors in February and went into examinership with debts of more than €1 million. The examiner, Joseph Walsh of Hughes Blakes Accountants, has written to creditors stating that his proposed scheme of arrangement will be "more beneficial" to creditors than a winding-up of the company.
Some 87 unsecured creditors will receive 10 per cent of the sums they are owed. The largest creditor in this category is a wine wholesaler called Radichio Consultants Ltd, trading as Woods Wines, which is owed almost €91,000 by the club.
Vernon Catering is owed almost €75,000, while Mullingar Farm Meats is owed €27,000. Other food and drink suppliers among the unsecured creditors include East Coast Suppliers, La Rousse Foods, Condrens, Gleneely Foods, Heineken Ireland and Ready Chef Limited.
Odessa’s landlords, Mel Sutcliffe and Joe Christle, have agreed to waive a sum of €135,000 owing to them. Monthly loan repayments will continue to be made to the secured creditor, Ulster Bank, which is owed €252,000.
