A receiver has been appointed to the Thomas Read Group of pubs and restaurants after the High Court heard an investor had withdrawn support for a survival plan.
The receiver was put in place today by the group's biggest creditor, ACC Bank, following the withdrawal of survival proposals from an examiner appointed by the court last November.
Court protection for the group - employing 400 and running 18 of Dublin's well known hostelries - had been extended since then to allow the examiner prepare a scheme of arrangement to ensure survival.
The petition for examinership was brought in November by Guerneville Ltd, the parent company of the group which comprises Sharmane Ltd and a number of related companies.
A key part of the investment to secure the group's survival was the involvement of a single investor who until yesterday had supported the examiner's plans.
A hearing to decide on a survival scheme began before Ms Justice Mary Finlay Geoghegan om March 13 when ACC - which is owed €15.5m - opposed the examiner's plan and asked that its proposals be approved instead.
On Wednesday, the judge granted an adjournment until yesterday to allow discussions take place between the examiner and another large creditor, Ulster Bank, which had expressed concerns over how its €5.6m debt was going to be paid back under the survival plan.
When the case resumed today, the judge was told this matter had been resolved but later she was told the single investor was no longer prepared to be involved.
Gary McCarthy BL, for the directors of the parent company, told the court in the afternoon that a board meeting had taken place over lunch and resolved to ask the judge to appoint a receiver which had been proposed by ACC.
The court heard the receiver would be appointed immediately.
Ms Justice Finlay Geoghegan said, in view of the fact that a receiver was being appointed, she would not exercise her discretion to order the winding up of the company notwithstanding that the evidence she had heard was that the company was insolvent. She ordered that court-protection should end from 3pm today.
The court also heard Ulster Bank was now supporting the ACC receivership.
The companies in the group had an excess of €26.7 million liabilities over assets and, if wound up, there would be a debt of some €38 million, the court heard previously.
Among the group's other large creditors are the Revenue, owed €2 million; Allied Irish Bank €4.6 million; Diageo Ireland €1.1 million and Lombard Ireland €1 million.
The companies operate The Bailey, Duke Street; Searsons, Baggot Street; The Winding Stair, Ormond Quay; The Globe, South Great Georges Street; Ri Ra, South Great Georges Street; The Harbourmaster Bar, IFSC; Thomas Read, Parliament Street; Pravda, Liffey Street; Floridita, Abbey Street; Dawson Lounge, Dawson Street, Ron Black's Dawson Street; Thomas Read, Smithfield; Lincoln Inn, Lincoln Place; and eight bars at Dublin Airport.
