Bank bid to sell off city hotel contents

Bank of Scotland this week sought orders from Mr Justice Tony Hunt appointing a receiver over the contents, fixtures and fittings of the Forster Court Hotel, which employs 34 people and is located just off Eyre Square on Forster Street.

BOS claims the appointment of a receiver over the contents will help the receiver realise the maximum value of the hotel which he intends to sell. The hotel has been valued at €2.75m.

In proceedings against the hotel’s owner, Ronan Lawless, the bank said that had already had receiver in place over the hotel itself 2012, which has continued to operate.

The court was also informed while he has not brought any proceedings challenging the receiver’s appointment, Mr Lawless is unhappy with the receivership, and is opposed to the hotel being sold.

At a vacation sitting of the High Court in an ex-parte hearing this week, where only one side was represented in court, Mr Justice Hunt heard the bank loaned more than €12m to Mr Lawless, with an address at Newcastle in Galway, in 2007. The loans were used to purchase and fit out the hotel, and service loans taken out with another bank, BOS claims.

BOS claims Mr Lawless defaulted on those loan agreements. Arising out a failure to satisfy BOS’s demand for the repayment of monies BOS says are due and owing, the bank secured judgment for €14.7m against Mr Lawless.

The receiver wants to sell the hotel and reduce Mr Lawless’s debt to BOS.

Following submission Mr Justice Hunt said he was prepared to appoint a receiver over the contents of the hotel.  However, noting Mr Lawless’s objections the judge said he was putting a stay on the receiver from taking any action or acting on his powers as receiver.

The stay is to allow Mr Lawless or lawyers on his behalf come to court and voice any concerns or objections they might have to the receivers’ appointment.

The judge adjourned the matter until after the Easter holidays.