G Hotel parent companies owe €690m to Deutsche Bank, High Court is told
Deutshe Bank is owed more than €690m by a group of companies controlled by Galway businessman Gerry Barrett, the High Court has heard.
Last month seven companies that form part of the Edward Capital Group were granted court protection after the bank appointed a receiver over the firms, which employ more than 330 full-time and part-time staff.
The companies sought the appointment of an examiner after the bank appointed a receiver over the companies.
Insolvency practioner Neil Hughes of Baker Tily Hughes Blacke was appointed interim examiner over ML Meyrick Ltd, MT Mono Trading Ltd, Edward Leisure Assets Unlimited Company, Niche Hotels Unlimited Company, Style City Limited, Radical Properties Unlimited Company, and Kitty Hall Holdings Limited.
The assets of the various firms include the four-star Meyrick Hotel, the five-star G Hotel and the Eye Cinema. They also hold various property assets including 38 apartments, a retail park, a house and sites in the Galway area. The total value of the seven firm's assets has been estimated at between €55m and €60m. The other companies in the group are not affected by the examinership application.
The group's assets include landmark hotels and shopping centres and it had also operated a successful construction company. It had previously owned Ashford Castle Hotel, which was sold four years ago.
The companies sought the appointment of the examiner as the companies were insolvent and unable to pay their debts as they fall due.
It sought the appointment of an examiner after Deutsche Bank appointed a receiver over the seven companies. The matter returned before the High Court yesterday when Mr Justice Henry Abbott approved the payment of a number of minor pre-petition debts. The Judge adjourned the matter to a date later this month.