Edwin McGreal
edwinmcgreal@mayonews.ie
Well-known Castlebar businessman Pat Jennings is seeking to remove bank appointed receivers from his two hotels in the town and put the business into examinership.
Mr Jennings, a former Mayo Person of the Year, has taken High Court action in relation to the two properties, the TF Royal Hotel and the Harlequin Hotel, The Sunday Business Post reports.
It has been adjourned and is expected to be heard this week. Mr Jennings is seeking to overturn the decision by Bank of Scotland (Ireland) to appoint a receiver to the two properties at the end of May, claiming the appointment was invalid.
The court also heard that he intends to petition for bankruptcy protection to allow the business to be restructured. If an examiner is appointed, the company would have 100 days to strike a deal with creditors. Bank of Scotland (Ireland) are opposing the move.
KPMG, the receivers appointed by Bank of Scotland (Ireland), remain in possession of the properties. BDL, a British hotel management company, are running the two hotels.
Both hotels were placed in receivership on Friday, May 25 last. Management at both hotels said there would be no job losses at either hotel and both would run ‘business as usual’ after being placed in receivership.
The TF has been run by the Jennings family for two generations. First established in the 1950s by Paddy and Mary B Jennings, both now deceased, the hotel was run up until May by their son Pat, and his wife, Mary.
The old ballroom at the TF was part of a major redevelopment project in recent years with the TF being one of the largest theatres outside of Dublin. The TF Royal Hotel and Theatre currently employ in the region of 40 people in full-time, part-time and casual positions.
The family business also expanded in 2006 when the Jennings’ opened Day’s Hotel close to the TF, now the Harlequin Hotel. The Harlequin employ in the region of 50 full and part-time staff.
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