THE APPOINTMENT OF an examiner to the operator of a Dublin City Centre hotel and bar that employs more than 50 people is to be opposed, the High Court heard today.
Ms Justice Caroline Costello yesterday appointed insolvency practitioner Tom Murray as interim examiner to JJ Red Holdings Ltd, the company that operates the Dublin Citi Hotel and the Trinity Bar & Venue at Dame Street, Dublin.
The company cited a dispute with its landlord Henciti Ltd, over claims for arrears of rent allegedly due, as the reason why it was seeking the protection of the court.
Barrister Rossa Fanning, counsel for Henciti, said his client would be opposing JJ Red Holding’s bid to enter examinership when the matter returns before the court in September.
JJ Red Holdings, which has been operating the 27 bedroom hotel since 2006, sought the protection of the court after it was unable to fulfil terms of a settlement agreement it had entered with its landlord.
Yesterday barrister Stephen Brady, counsel for JJ Red Holdings, told the court that separate High Court proceedings arising out of the dispute over rent arrears had been settled in July.
As part of the terms of settlement JJ Red Holdings agreed to make a number of six figure payments to the landlord between July and the end of the year but if the agreement was defaulted on the landlord was entitled to reliefs including to re-take possession of the premises.
While the first payment was made, JJ Red Holdings had been unable to make the second payment. This had been due to a belief by JJ Red Holdings that it would be provided with the monies from its bank allowing it to pay the sums agreed.
The court was told that for some reason only known to the bank the money was not available.
Counsel said his client had entered into the settlement talks with the landlord in good faith and believed funds would be available allowing them keep their side of the settlement agreement.
In order to protect the business and maintain jobs, the company was seeking the appointment of an examiner.