ANGLO IRISH Bank is not expected to support Black Shore Holdings’ bid to get protection from its creditors in the High Court today.
Black Shore, which owns the Shelbourne Hotel, will ask the court to appoint an examiner today. Such a move will give it up to three months’ protection from creditors, and breathing space to formulate a rescue plan.
Galway businessman John Sweeney and his wife Treena Sweeney jointly own Black Shore. The company has been in talks with its bankers, including State-owned Anglo Irish, AIB, Bank of Ireland and Bank of Scotland Ireland. Anglo has indicated it does not intend to support Black Shore’s petition to be placed in examinership.
The High Court has appointed Michael McAteer of Grant Thornton as interim examiner. It is set to begin hearing evidence today before deciding whether or not to confirm the appointment of an examiner to the company.
Black Shore’s interests range from Sweeney Oil service stations to the Shelbourne Hotel. It is being pursued by Esso over guarantees it gave on the debts of its former subsidiary, Fate Park. The former fuel distribution subsidiary went into examinership last year after developing cash-flow difficulties. It was then snapped up by Tedcastles Group.
At the time of that sale, Fate Park owed Esso €12.4 million, of which €12.3 million is still outstanding. According to court documents filed by Black Shore in support of the petition for examinership, Mr and Mrs Sweeney were repaid €2 million of a €3 million loan in the past two years.
Accounts filed last December by Shelbourne Hotel Holdings, which were signed off by Mr Sweeney, show the net book value of the landmark property is €238,998,442.
Sweeney was part of a consortium of investors, that included the now insolvent Bernard McNamara, who bought the high-profile hotel for €132 million in 2004. The syndicate ploughed €121 million in to develop the property. However, a leading industry expert calculates the hotel’s value now sits somewhere between €120 and €150 million. The trophy asset may end up in the National Asset Management Agency.
