Liquidator appointed to luxury spa hotel
OPERATORS of a luxury hotel and spa complex catering to the international jet set have gone into liquidation.
The High Court yesterday appointed provisional liquidators to Durgman Entertainment Ltd, which operated the four-star BrookLodge and Wells Spa in Aughrim, Co Wicklow.
However, the hotel said last night that it was continuing to operate as usual.
Mr Justice Roderick Murphy was told that the company was insolvent and unable to pay a €1.2m debt to one of its creditors. He also heard that three directors of the company threatened to transfer the assets to a new company to avoid a court order requiring them to pay a €1.2m debt.
As a result, Eamonn Galavan, of Clonroche, Enniscorthy, Co Wexford, is to bring contempt proceedings in the Commercial Court against the directors.
They have been named as Bernard Doyle, of Waterside, Darglevale, Bray, Co Wicklow; Evan Doyle, of Macreddin, Aughrim, Co Wicklow; and Eoin Doyle, of Levmoss Hall, The Gallops, Leopardstown, Co Dublin.
They were unavailable for comment last night. The contempt application arises out of their alleged failure to abide by a court order granted on March 3, 2010, that Durgman and two related companies purchased €1.2m worth of shares from a company owned by Mr Galavan.
An appeal was lodged against the order on March 16, 2010, but no steps have since been taken to prosecute it, Mr Galavan claimed in an affidavit.
The petition to appoint Hughes Blake accountants was made on an ex-parte (one side only) basis by Gary McCarthy, for Mr Galavan.
Mr McCarthy told the court that following the order last year, discussions took place between Mr Galavan and the directors of Durgman Entertainment, where it was agreed they would pay him €100,000 over five years on condition that information would also be given to Mr Galavan in relation to transfers to related parties of the company.
The directors of Durgman threatened that unless Mr Galavan accepted this deal, they would liquidate Durgman, counsel said.
The deal never happened and on June 29, Mr Galavan learned that the threat had been carried out, Mr McCarthy said.
The court adjourned to later this month.