AN INTERIM examiner has been appointed to an oil distribution company owned by Galway businessman and hotelier John Sweeney, one of the shareholders in the Shelbourne Hotel in Dublin.
Accountant Billy O’Riordan of PricewaterhouseCoopers was appointed to Fate Park yesterday after the company ran into financial difficulties over cashflow constraints arising from the funding of subsidiaries within the group.
The company, which traded as Sweeney Oil, is a wholesale and retail oil distributor in Connacht.
The firm is lining up an investor to provide additional funds so the company can continue as a going concern. Mr Sweeney could not be reached for comment yesterday.
The businessman acquired the 50 per cent stake he did not own in Fate Park in 2007 for €12 million, giving Mr Sweeney full control of the company. Fate Park was originally set up as a 50-50 joint venture with Norwegian oil giant Statoil which sold its Irish forecourt operation to Topaz in 2007.
Mr Sweeney was an underbidder for the Statoil business.
The Galway businessman held his interest in Fate Park through his overall trading company Blackshore Holdings, which covers his hotel, oil and property interests.
Fate Park did not file accounts for its most recent financial year to February 2008, availing of an exemption under company law.
The company instead submitted accounts for its parent, Blackshore, which, records show, guaranteed the liabilities of Fate Park.
Blackshore made a pretax loss of €2.8 million during that year, compared with a profit of €1.1 million the previous year, according to accounts for the company.
Turnover climbed to €196.8 million from €168.5 million in the previous year.
Sales of petroleum products accounted for €161 million of the company’s turnover, up from €134.9 million the previous year.
The firm had retained losses of €1.1 million at the end of the year.
Blackshore’s bankers are listed in the accounts as AIB, Anglo Irish Bank, Bank of Ireland, Bank of Scotland (Ireland) and KBC Bank.
Originally from Connemara, Mr Sweeney owns the Marriott Courtyard Hotel at Terryland in Galway, Station House Hotel in Clifden, and the Marriott Johnstown House Hotel in Enfield, Co Meath.
