Cavan Crystal Hotel in receivership with €12m debt to ACC
THE Cavan Crystal Hotel, in Cavan town, has been placed into receivership after ACC moved to recoup €12m of loans secured against the hotel.
The hotel will stay open under the receiver's control and its 120 staff will continue to be employed as normal.
Accountant Kieran Wallace of KPMG was appointed as receiver to Cavan Hotel & Leisure Company which operates the hotel last night.
He said the business remains fully open for business as usual, including weddings and events.
The luxury four star hotel is famous for showcasing local craft including Cavan crystal. It features 85 bedrooms as well as business suites and conference rooms and hi-tech leisure facilities.
The receiver is understood to have been appointed by ACC Bank, which has a number of charges over the company and its assets.
Cavan Hotel & Leisure Company, which operates the business had net debt of €1.5m at the end of 2009, when its most recent set of accounts was filed with the Companies Office. That included a bank overdraft of €190,000 and trade creditors of €445,463.
However, ACC is understood to be owed €12m in total, encompassing some property-related debt.
In a statement, Mr Wallace said the business will continue to trade as normal and will keep the Cavan Crystal Hotel name.
That's despite the fact that the Cavan Crystal glass business is not affected by the receivership.
Mr Wallace is no stranger to Cavan thanks to his role as share receiver over the Quinn family's extensive assets in the county.
The hotel sector has been hit hard by the recession -- with credit pulled and income falling. It also comes at a time when many hotel owners still have large debts outstanding as a result of developing hotel properties.