O'Brien's can pursue orders to revoke leases
The High Court has granted O'Brien's Sandwich Bars permission to seek orders revoking lease agreements it had entered for a number of its outlets.
Yesterday, Mr Justice John MacMenamin granted the company, which was successful in its application for examinership earlier this year, permission to serve short service to all relevant parties including six landlords and one sub lettee.
The court heard that the company is seeking to repudiate a number of its leases.
Counsel for O'Brien's said that all the different parties had been informed about the intention to make the application in relation to the lease agreement before the court.
The judge made the matter returnable to next Monday. Yesterday's application was made on an ex-parte (one side only) basis. If the lease agreements for certain premises are terminated it will allow the court-appointed examiner to finalise his scheme of arrangement.
If the scheme of arrangement is successful and approved by the companies' creditors and the High Court, the sandwich outlet will be restructured and can trade into the future.
Paul McCann of Grant Thornton was appointed as examiner to the group last July. The company applied for the protection of the court, after it revealed it was insolvent with debts of more than €4m, including €3.4m owed to Bank of Ireland.
The court was told on that occasion that the company had a reasonable prospect of survival once certain conditions were met, including the closure of up to 85 of its stores.
An independent accountant reported that the company could survive as a going concern although there would be a deficiency of some €4.1m to creditors. That would increase to some €6.3m if the company was wound up.
- Aodhan O'Faolain
