Monday 17 June 2019

Lender appoints receiver to Galway Clinic shareholder

A British lender has moved to appoint a receiver to Blackrock Medical Partners, a company connected to Chicago-based medic Dr Joseph Sheehan Sr which has been involved a dispute between Dr Sheehan Sr and Larry Goodman. Stock photo: PA
A British lender has moved to appoint a receiver to Blackrock Medical Partners, a company connected to Chicago-based medic Dr Joseph Sheehan Sr which has been involved a dispute between Dr Sheehan Sr and Larry Goodman. Stock photo: PA
Gavin McLoughlin

Gavin McLoughlin

A British lender has moved to appoint a receiver to Blackrock Medical Partners, a company connected to Chicago-based medic Dr Joseph Sheehan Sr which has been involved a dispute between Dr Sheehan Sr and Larry Goodman.

A notice in the official State gazette 'Iris Oifigiuil' says Ken Fennell of Deloitte has been appointed as receiver to Blackrock, at the behest of a company called Glas Trust Corporation Ltd. Glas's parent is Global Loan Agency Services Ltd, a London-based lender trading as Glas.

The notice says that Glas Trust had a charge over Blackrock assets, on foot of a debenture - a type of loan - that it had given to Blackrock.

Blackrock Medical Partners is the entity that holds Dr Sheehan's 25pc stake in the Galway Clinic, where Mr Goodman's Parma Investments is also a shareholder.

Dr Sheehan Sr also holds shares in the Blackrock Clinic, as does Mr Goodman, but Blackrock Medical Partners is not a shareholder in the Dublin clinic.

Documents filed at the Companies Registration Office state that Glas Trust was given the charge in November 2015.

According to the documents, Blackrock's shares in Marpole, the company behind the Galway Clinic, are among the assets that Glas Trust was given a charge over.

A receiver's job is to recover the money owed by a company to a creditor. They may be appointed to a company by a court or by the terms attached to the loan given to a company, and their appointment can also be challenged in court.

In this case, Glas Trust says it's appointing Mr Fennell on foot of the terms of the debenture.

Blackrock Medical Partners has been in a bitter dispute with Mr Goodman's Parma Investments over the Galway clinic.

The dispute relates to a transfer of shares in Marpole Ltd, the entity behind the Galway clinic. The High Court heard that after becoming ill with cancer, businessman Brendan McDonald wished to transfer his shares in Marpole to Mr Goodman's Parma Investments.

Dr Sheehan Sr told the hearing said that a transaction designed to effect the transfer was in violation of a shareholders' agreement.

He claimed that he was an oppressed minority shareholder and that the defendants in the case, including Mr Goodman's Parma Investments, wanted to keep him in the dark about developments. Dr Sheehan Sr also said he had disagreements with fellow shareholders about plans for spending at the clinic.

Brian O'Moore SC, acting for Parma Investments, told the court that Dr Sheehan's proceedings were motivated by "a long-standing dispute with Mr Goodman and a desire to hamper him".

The extent of the bitterness in the dispute was laid bare when the court heard that a son of Dr Sheehan Sr had insulted the parental status of Mr Goodman's children, who are adopted.

The insulting statement about Mr Goodman's children was made in a email by Dr Joseph Sheehan Jr to Brendan McDonald, the court heard.

Mr O'Moore SC told the court that the email would "turn the stomach". The court heard that the email had also expressed a wish that Mr McDonald would "have an enjoyable remainder to the time you have left".

Dr Sheehan Sr, who has also been in dispute with Mr Goodman over the Blackrock clinic, told the court he would be willing to consent to a second share transfer transaction done by Mr McDonald's BMD Investments and Mr Goodman's Parma Investments. That transaction was carried out after the original, disputed, share transfer transaction.

The parties are awaiting judgment in the case.

Dr Sheehan Sr had come up with the idea for the Galway Clinic, and had commenced the project with his brother Dr James Sheehan, a well-known Dublin-based medic. The brothers had previously worked together on the Blackrock clinic.

The court heard that Mr Goodman, a personal friend of Dr James Sheehan, invested in the Galway project after reading in the newspaper that it had got into financial difficulty.

Dr James Sheehan told the court that relations with his brother had deteriorated and that this had caused him "huge upset".

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