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Saturday 20 September 2014

Academy shut owing €1.4m to state bodies

Cormac Murphy

Published 24/05/2014 | 02:30

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AN international school closed owing €1.4m including almost half a million to state bodies, its directors estimate.

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Eden College on Burgh Quay in Dublin 2 shut down suddenly last month, leaving 1,200 students in the lurch.

At a creditors' meeting held in Chapelizod last night, director Fakir Hossain denied he "trousered" fees from students prior to the closure.

It was outlined that €1,023,211 was owed to unsecured creditors and €339,920 to preferential creditors.

Some €57,933 was due to students, according to the directors' estimations.

This was challenged by Kevin Barry, a solicitor for 216 students, who said they alone were owed €337,000.

The Irish Aviation Authority (IAA), Dublin City Council and the Revenue Commissioners were listed as being owed €303,000, €122,097 and €60,166, respectively.

The IAA was the landlord of the Burgh Quay premises, while the council is owed commercial rates. Former teachers were due €157,657.

Dave Moore of the Irish Council for International Students (ICOS) said the details will be challenged in the High Court next week.

Mr Hossain attended the meeting in the West County Hotel but Mr Moore expressed frustration that more information was not forthcoming.

"I think the mood in the room was that the process was very unsatisfactory," he said.

Chill Out Ventures Ltd, of which Mr Hossain is a director, was owed €322,750. Money totalling €71,600 was due to Mr Hossain for a 'director loan'.

Lawyers questioned why €800,000 was paid out of Eden in 2012 to another company owned by Mr Hossain.

Irish Independent

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