Howard Holdings to defend winding-up petition in England
Irish property developer Howard Holdings intends to defend itself against a winding-up petition being submitted to the English courts by London civil engineering firm Fenton Holloway.
The legal proceedings arise from an aborted Weymouth project involving one of Howard's UK subsidiaries. Howard says the proceedings "have no implications for Howard Holdings generally and the group is trading actively across a number of property markets".
The statement follows a decision by English Companies Court judge Mr Registrar Jaques to allow the petition to proceed after five creditors brought legal proceedings.
These legal proceedings in turn follow a February case in which Howard Holdings was ordered to pay Fenton Holloway £186,972 in a dispute over marine work carried out on its proposed £135m mixed-use leisure scheme in Weymouth between April and September 2008. That judgment debt has not been paid. In the latest court case, counsel for Howard Holdings attempted to block Fenton's application on the grounds that the debt was owed by a subsidiary responsible for the Weymouth project and not the group. That subsidiary, Howard Holdings (Weymouth) was itself wound up at the High Court in Bristol on March 19.
In the latest court decision, the judge rejected Howard Holdings' submission and said that it would be up to the firm to argue that point when the matter returns to court on June 24.
Settlement
A spokesman for Howard Holdings said told the Irish Independent yesterday: "Fenton Holloway's contract was with Howard Weymouth, a single-vehicle partnership with Weymouth Council to undertake a €150m project. Ultimately, neither Howard Weymouth nor the council wish to proceed with the project against the backdrop of deteriorating market conditions.
"Howard Weymouth has been wound up and we will be defending our position with Fenton Holloway or preferably coming to a negotiated settlement with them."
- Donal Buckley
