Application to have O'Reilly firm wound up

TWO BUSINESSMEN are seeking to have one of developer Jeremiah O’Reilly’s companies wound up in a row over a €400,000 property deal in Croatia.

Mr O’Reilly controls a property development group with investments in Ireland and abroad. His holdings include a stake in grocery chain Superquinn and the Shelbourne Hotel in Dublin.

James Colgan and Eamon Cox petitioned the High Court yesterday to wind up Jeremiah O’Reilly and Associates, which, they claim, owes them €248,862.

The firm rejected the claim yesterday and told Ms Justice Mary Laffoy that Mr Colgan and Mr Cox are not creditors of the business.

In 2005, Mr Colgan and Mr Cox agreed to invest €700,000 with Mr O’Reilly in return for a 20 per cent stake in a property in Croatia that was being organised through a local company called Roberts Nekretnine.

They paid an initial €400,000 and were to pay €300,000 once the development company had succeeded in getting planning permission to develop the property.

They said the company subsequently sold the property without getting planning permission in breach of the agreement, and, as a result, owed them €400,000.

In reply, the company said the deal was between Mr O’Reilly and Mr Colgan and Mr Cox, and not Jeremiah O’Reilly and Associates.

The judge yesterday adjourned the case for three weeks.