This Company was involved in the operation of hotel, night club and bar in County Wicklow. The Company’s business commenced in 1984 and the hotel traded profitably for a number of years.
However, the following difficulties for the company became very apparent:
- Difficulties in the hotel sector as a whole, including over supply of hotel rooms as a result of tax incentives in the sector
- Management issues
- Significant contingent liabilities as a result of third party claims against the Company
The company became insolvent and entered Examinership in. Neil Hughes Examiner at Baker Tilly was appointed examiner to the company.
Over the course of the 100 day protection process, new investment was secured for the company from the existing directors. The Company reduced its costs, secured a tax clearance certificate and returned to profitability.
The company emerged from Examinership after reaching agreement with its creditors to pay them a 10% dividend on their debts. The Revenue Commissioners were paid 20% in full and final settlement of arrears.
The scheme was approved by the High Court and the company exited the process with 45 jobs intact and all historic creditors fully discharged through the scheme of arrangement.