Receiver unable to repossess leased buildings, court told
A BANK-appointed receiver claims he is being denied possession of a number of Dublin properties because they have been partly leased out as a holiday hostel without the bank's permission.
Martin Ferris was appointed receiver by Danske Bank last December over a number of properties at Charlemont Street, including buildings in which the Citi Hostel operates.
Yesterday, Mr Ferris asked the High Court to grant an injunction preventing John Meagher and Echoford Ltd, the company operating the hostel, to hand over the properties.
Mr Ferris claims Mr Meagher, as landlord, had no right to lease the premises to Echoford without the bank's permission.
The bank appointed the receiver arising out of alleged unpaid arrears on €2.7 m loans given by the bank to Mr Meagher to purchase properties in Charlemont Street.
The injunction is being sought against Mr Meagher, who was not in court or represented, and against Echoford, which says Mr Meagher no longer has any beneficial interest in the company.
Echoford says it had no knowledge that the consent of the bank was required before it entered into a lease with Mr Meagher for the properties.
The company also opposes the receiver's application for an injunction and says it should be allowed to remain in occupation pending a full hearing of the matter. It also claims Mr Meagher has no role or part in Echoford as he had transferred any interest in it previously.
The receiver claims Mr Meagher transferred his interest for a nominal sum.