The trial of Conrad Gallagher has heard how the former celebrity chef was insolvent when he took over the running of two restaurants in Dublin's Fitzwilliam hotel in 1998.
Mr Gallagher is accused of stealing three paintings from the Fitzwilliam Hotel.
The trial heard how the chef was £92,000 in debt when he took over the running of the restaurants.
Michael Holland, the Managing Director of Ampleforth which owns the Fitzwilliam Hotel, said the company lent Gallagher £50,000 to help him out of his difficulties and gave him a rent free period.
The company later agreed to buy 19 paintings from Mr Gallagher for £20,000 to help with cash flow problems.
Mr Holland said the accused produced a list of paintings numbered 1 to 16.
It transpired that there were actually 19 paintings on the schedule which included the three allegedly stolen by Mr Gallagher.
When hotel staff noticed the paintings were missing off the walls outside the Peacock Alley restaurant, Mr Gallagher initially said he had sent them to a gallery in Dun Laoghaire to have security tags fitted and would have them back the next day.
When questioned again he said a group of thugs had taken them in lieu of money he owned them, and that these were men who would break legs.
The three abstract paintings by Felim Egan were produced in court for the benefit of the jury.
The jury was told that Conrad Gallagher sold the paintings to Adams Auctioneers and Valuers in Blackrock for £9,000.
It later emerged that the cheque for the sale was lodged to a company set up by the Fitzwilliam Hotel to run the two Gallagher restaurants.
Mr Holland said he informed the gardaí because he thought the lodgement looked suspicious and he felt it might have something to do with the missing paintings.
The trial is expected to last for the remainder of the week.
