Jennings family to appeal High Court ruling

GOING TO THE SUPREME COURT Castlebar businssman Pat Jennings.

Jennings family to appeal High Court ruling


TF legal issue set to run on

Edwin McGreal
edwinmcgreal@mayonews.ie

The Jennings family and directors of Diorama Limited will appeal to the Supreme Court following last week’s High Court ruling that the appointment of a receiver to TF Hotel and Theatre in Castlebar is valid.
The TF Hotel had been in the hands of the Jennings family from 1953 until last May, with the arrival of receivers KPMG on behalf of Lloyds/Bank of Scotland PLC.
The Jennings family’s holding company, Diorama Limited, appealed the appointment of the receiver on the grounds that they claimed the Deed of Appointment for the receiver is invalid and on the grounds of the sweep of €3 million in deposit funds in 2010, which the Jennings family argue was unlawful.
Justice Brian McGovern gave his verdict on Wednesday morning last in favour of the receivers but the board of Diorama Limited have confirmed to The Mayo News that they will lodge an appeal to the Supreme Court this week.
The Jennings family argue that, upon the arrival of the receivers last May, Pat and Mary Jennings wanted to proceed to examinership. They say that the receiver ‘actively denied’ them their ‘legal right’ to access company books and records to prepare and file the examinership petition.
The High Court heard that the there are several versions of a Deed of Appointment in existence. The Jennings’s and their fellow directors argue that ‘despite continuous requests’ on behalf of the board of Diorama Limited and their legal team, they still haven’t been furnished with the original Deed of Appointment, arguing that this document does not exist and that the receivership was invalid on that basis.
They also argue that a figure of €3 million was seized by Bank of Scotland in December 2010 without any notice to Pat and Mary Jennings.
Diorama Limited state that these monies were held on deposit with Bank of Scotland for the purpose of assisting the company in difficulty and servicing arrears of all loans, arguing that if the monies were not swept in that way and remained pledged to the loans in the normal way, there would be no arrears at the time of appointment of receivers last May.
In a statement from the Diorama Limited Board of Directors, they state that ‘the bank swept the funds and unlawfully put them against a principal amount of one loan only so as to reduce their liability in order to satisfy their planned exodus strategy from Ireland’.
The Board also say that they received no letter informing them of the sweep.
The Jennings family expressed sincere gratitude to their legal team and to the people of Castlebar and beyond for their ‘unrelenting and continuous support’. 
“The continued financial and personal support which Pat and Mary Jennings have received has been overwhelming and the Jennings family are very appreciative of this,” they say, in the statement.
At Westport District Court last Thursday, Judge Mary Devins refused an application to change the name of the nominee for the licences at the TF from Pat Jennings to Barry Donohue, for the receiver. She said she felt that the licence could still be held in the name of the company, Diorama, without the need for a nominee.
No exemptions will be granted for the Christmas period, which Rory O’Connor, solicitor for the receivers, said will make trading very difficult.
The matter has been adjourned further to Castlebar District Court on January 2.

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