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Examiner appointed over company operating Dublin hotel
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High Court confirms the appointment of an examiner over a company that owns and operates the Regency Hotel in Dublin and another related company, despite the objections of by far their largest creditor, on the grounds that: (a) although there was a material non-disclosure by one of the companies' main shareholders in his affidavit, it was not serious enough to cause the court to exercise its discretion not to hear the examinership petition; (b) the fact that the companies employ well over a hundred people is a relevant consideration when deciding what the consequences of the non-disclosure should be; and (c) the petition was not brought for an improper purpose, namely to safeguard the current shareholders' control, and in this regard their wishes will not be central to the considerations of the examiner.
High Court - examinership petition - objections raised by main creditor: (a) material omission from the petition and verifying affidavit and (b) petition for the appointment of examiner has been presented for improper motive - s. 512 of the Companies Act 2004 - s. 517 of the Companies Act 2004 - company owns and operates hotel - hotel has over 100 staff - whether examiner's appointment should not be confirmed - court notes purposes of examinership: to enable enterprise with reasonable prospect of survival continuing in existence for the benefit of the economy; to save jobs - whether refusal would be draconian - court finds non-disclosure occurred but was not serious enough to warrant refusal to hear petition - Court finds that while main shareholding family may wish to maintain control of companies, this will not be the concern of the examiner - examinership not brought for improper purpose - examinership confirmed.
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