Dunnes Stores’ refusal to release €15 million funds allegedly due under a settlement agreement is frustrating the ability to fund continuing works at the Point Village development in Dublin’s docklands, it has been claimed at the Commercial Court.
The receivers of Point Village Development Ltd (PVDL) have initiated proceedings in a bid to get Dunnes to release the €15 million. Mr Justice Brian McGovern on Monday agreed to fast-track the case in the Commercial Court, the big business division of the High Court.
The joint receivers, Stephen Tennant and Paul McCann of Grant Thornton, say the dispute needs to be urgently determined.
In an affidavit on behalf of the receivers, Mr Tennant said they are involved in ongoing work to complete the development of the Point Village Centre.
Completion was not only for the benefit of Dunnes, which owns a significant unit in the centre, but as part of a broader scheme to regenerate the north docklands and realise assets at best possible value to reduce the indebtedness of Harry Crosbie and PVDL, he said.
The development and settlement agreements contemplated that consideration would be released to the developer on a phased basis as certain milestones were achieved in order to ensure sufficient cash flow to move to the next stage of development, he said.
Mr Tennant said, by refusing to release the funds, Dunnes is frustrating the receivers’ ability to fund the continuing works at the Point Village centre.
A settlement agreement provided the monies would be released once binding agreements for leases were exchanged in relation to seven units in the centre and that the tenant mix would also be discussed with Dunnes,he said.
Lease agreements have been exchanged in respect of nine of the centre units and PVDL had engaged in prior discussions with Dunnes about the tenant mix in 2014, he said.
The dispute with Dunnes was having a serious impact on the ability of the receivers to maximise value from the assets as, without an anchor tenant, it was difficult to attract other tenants to the shopping centre, he said.
The case will return to the court the court on May 30th.
