THE President of the High Court yesterday ended the examinership of the company which was developing the Iveagh Baths fitness and leisure centre in Dublin.

Mr Justice Costello upheld a previous contract, in which the centre was sold to the Sean Quinn Group for £700,000, and declared that the examinership should never have taken place.

An application against the examiner's appointment was brought yesterday by Mr Sean Quinn's company, Quinn Public Houses, which claimed it had a binding agreement for the purchase of the assets of the fitness centre with the receiver appointed before the examinership proceedings.

The examiner opposed the application.

The examiner, Mr Jason Sheehy, was appointed by Mr Justice Costello to Colmant Ltd on February 14th last on the petition of one of the company's creditors.

The receiver, Mr Barry Forrest, had claimed at that hearing that there was an agreement with Quinn Public Houses to purchase the assets and liabilities from him for £700,000 and that the money had already been paid in full.

Mr Quinn is a well known businessman with interests in cement manufacturing, insurance and a string of public houses.

Yesterday, Mr Justice Costello, said that when he heard an application to appoint an examiner, the point was raised that a contract of sale of the premises had been entered into. He said he wished to make clear that, had he been satisfied when he heard the petition that there was an enforceable agreement, he would not have made the examinership order.

The judge said he was satisfied that the agreement was enforceable and that an enforceable agreement existed. The receiver's solicitor, Mr Michael O'Sullivan, had a document which confirmed the existence of the agreement. There was also an affidavit of the receiver, who admitted to the existence of a contract and clearly showed he believed a binding contract existed.

He had no doubt that the examinership should never have taken place and should be stopped before any further costs were incurred.

The purchaser wanted to develop the assets and wanted to run the fitness club, and was entitled to it as a matter of law as he had an enforceable contract.

It is understood that another £500,000 would complete the centre, originally due to open last October. Facilities include a swimming pool, aerobics studio and a gymnasium. Around 800 people had already paid deposits for membership fees which ranged from £495 a year for single membership to £700 a year for couples.