Court asked to approve survival plan for seven Galway-based firms

The High Court has been asked to approve survival schemes for seven companies controlled by Galway businessman Gerry Barrett and employing more than 330 people.

The schemes have been put in place by insolvency practitioner Neil Hughes, who was appointed earlier this year as examiner to the companies, connected to businesses including the G Hotel, the Meyrick Hotel, the Eye Cinema, apartments and a retail park, all located in Galway city.

The companies, who had sought the examiner’s appointment, are opposing the proposed schemes of arrangement and their lawyers will set out the reasons why when the hearing resumes next week.

All part of Mr Barrett's Edward Capital Group, the companies are KH Kitty Hall Holdings Ltd, Ml Meyrick Ltd, Mono Trading Ltd, Edward Leisure Assets Unlimited Company, Niche Hotels Unlimited Company, Style City Limited and Radical Properties Unlimited Company.

Court protection

The companies, whose directors are Gerry Barrett and Catherine Barrett, Chestnut Lane, Lower Dangan, Galway, sought court protection after Deutsche Bank appointed a receiver over the firms.

The bank, owed more than €690 million by the group after acquiring its loans from the National Asset Management Agency in 2015, had opposed examinership on grounds including claims it was an attempt by the companies to renege on a 2016 debt settlement agreement which would have resulted in the sale of the group's assets to reduce its debt to the bank.

The bank is now supporting the proposed survival schemes.

During a hearing on Friday, Ms Justice Marie Baker was told that under the schemes an investor, Waltzfire Ltd, has offered to put €89 million into the companies, as well as an additional €9 million working capital. The hearing was adjourned to resume next week.