Reilly 'takes hit' with investors over nursing home sale
Published 01/02/2014 | 02:30
HEALTH Minister James Reilly is one of a number of backers of a nursing home who have "taken the hit" over their investment, a court was told.
An agreement has been reached with other investors at Greenhill Nursing Home, the High Court heard. The home in Carrick-on-Suir in Tipperary is to be sold by order of the court to discharge a €2.1m bank debt owed by other investors.
Almost two years ago, Dr Reilly was named in 'Stubbs Gazette'. He was one of five investors who had a €1.9m judgment registered against them after agreeing but failing to buy out the nursing home.
This emerged following an anaylsis of the minister's complex business arrangement.
The court has heard that Dr Reilly along with three other people and co-owner of the nursing home Dr Dilip Jondhale were "recourse" investors in 2000, which made them liable for monies borrowed.
Eight other people were "non-recourse" investors. They had an option after 10 years to call on the recourse investors to sell the nursing home to them for €1.9m. In November 2012, the non-recourse owners issued bankruptcy proceedings against Dr Jondhale, who then sought a court order against all the investors that the property be sold in lieu of its partition as an asset. The non-recourse investors had opposed the application. The case was listed yesterday for Mr Justice Sean Ryan, who was told that following talks "agreement had broken out" between the parties.
Mark Sanfey SC said Dr Jondhale believed the proceeds from a sale would satisfy a total of €2.1m being sought by the non-recourse investors.
The court heard also that the bankruptcy proceedings remain and are listed for hearing next March.