Thursday 18 January 2018

Druid's Glen golf course exits examinership

The golf course at Druids Glen Golf Resort.
The golf course at Druids Glen Golf Resort.
The clubhouse at Druids Glen Golf course

Aodhan O' Faolain

An agreement has been reached allowing one of Ireland's leading golf courses exit examinership, the High Court heard this morning.

Druids Glen Golf Club Ltd which owns and operates the Druid's Glen Golf Course sought the protection of the High Court after a Financial company, which acquired a loan a related company, Lakeford Ltd, had acquired from Anglo Irish Bank some years ago, appointed a receiver over the 18-hole championship course.

The fund, Gulland Property Finance Ltd, claimed it was owed some €4.85m by Lakeford and appointed a receiver over the course at Newtownmountkennedy Co Wicklow  after its demand to be paid was not satisfied.

Following the receiver’s appointment, DGGC went to the High Court, and had insolvency practioner Mr John McStay of McStay Luby Accountants was appointed interim examiner to both the Druids Glen and Lakeford.  Gulland had indicated its opposition to the examinership application.

The matter returned before the High Court on Tuesday morning when Ms Justice Caroline Costello was told by Patrick Leonard SC for Druids Glen that an agreement had been reached with Gulland.

Counsel said Druids Glen and Lakeland had secured funding by way of investment from Candarlii Ltd, a related company within the Druids Glen group, and €1.8m loan from AIB, which had supported the application for examinership.

As a result monies had been paid to Gulland, satisfying their debt. Counsel added that Druids Glen had funds to pay off all of its preferential and trade creditors.

Those creditors will be paid shortly, the court heard. It had also agreed to pay the interim examiners costs, counsel said.

The company was no longer insolvent, and was seeking to withdraw its application for examinership, counsel said.

In a sworn statement to the court Donal Flinn, a director of Druids Glen, said the company had worked tirelessly since the appointment of the interim examiner to secure funding to discharge the company's debts.

Ms Justice Costello agreed to withdraw the petition for examinership, and welcomed the company's agreement with its creditors.

The course, which employs 36 people, has previously hosted a number of Irish Open Golf tournaments in the 1990s and in 2002 the Seve Trophy - the competition where Ireland and Britain's top professional men's golfers take on Continental Europe's top players.

The adjoining Druids Glen five star hotel, and a second 18-hole course, the Druids Heath Golf Course, were not part of the examinership process.

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