Judgment reserved in case over high-profile Dublin hotel

The Commercial Court has reserved judgment in the case between merchant bank Goldman Sachs and companies linked to developer Padraic Rhatigan over the ownership of a high-profile Dublin hotel.

Luxor Investments and a number of other companies associated with Mr Rhatigan are challenging Goldman Sachs and an associate, Beltany Properties' rights to appoint a receiver over a number of assets, including the Radisson Blu Hotel on Golden Lane in Dublin.

Luxor and the other plaintiffs say they are prepared to repay all of the €80 million due to Goldman and its associate, and that the move to appoint receivers is designed to give the bank control of the hotel.

Goldman purchased the total €80 million debt due to Ulster Bank from Luxor and its associated companies last year as part of a portfolio of loans called Project Nadal. As a result, Goldman and Beltany say they have the right to enforce the debt against Luxor and the other companies.

Mr Justice Brian McGovern reserved judgment in the case yesterday following a three-day hearing in the Commercial Court in Dublin.

Central to the dispute is Goldman Sachs’ and Beltany’s claim that as well as the debt due to them, Luxor and the other plaintiff companies owe an extra fee related to the value of the hotel.

The fee stems from a restructuring of the loans agreed between the plaintiffs and Ulster Bank in 2013. Under the terms of that deal Luxor agreed to sell some properties other than the hotel to repay part of its debt to the lender.

To compensate it for any loss, Luxor agreed that the bank would receive a fee. This was to be calculated as 70 per cent of any growth in the value of the Radisson Blu.

Luxor maintains that this should no longer apply as it can now repay all of the money due to Goldman and Beltany and all of the interest due on the loans has been paid.

However, the defendants argue the fee is still due and that in arguing it is not the plaintiffs are seeking a discount on their liabilities.

Mr Rhatigan agreed the refinancing of the entire €80 million debt this year.

Luxor and the other companies involved in the case are separate from his building business JJ Rhatigan.