A credit union which claims it is owed €1.7 million by the operators of a Dublin licensed premises was granted a High Court order yesterday for the appointment of a receiver to the establishment.
The order was granted to E Services and Communications Credit Union - formerly Telecom Éireann Staff Credit Union and later Eircom Staff Credit Union - in respect of the The Shipwright, Thorncastle Street, Ringsend, Dublin.
The credit union was also granted an injunction restraining the defendants trading on foot of the publican's ordinary licence held in the name of Bowbreaker Ltd in respect of The Shipwright.
On the application of Mr Mark Sanfey SC, instructed by O'Grady Solicitors, Mr Tom Kavanagh of Kavanagh Fennell was appointed to act as receiver. The defendants were named as Mr Eoghan Breathnach and Mr Thomas Bohan.
In an affidavit, Mr Martin Nolan, chairman of the credit union, said it had sanctioned loan facilities to the defendants in 1996. Over a number of years amounts were drawn down. Around September last, it was agreed between the parties that the loans be restructured to be combined into one amount.
Mr Nolan referred to correspondence between the sides in which it was stated that two leases were provided in respect of the premises and that the licence was held in the name of an operating company.
The first lease was between the defendants and Bowbreaker Ltd in respect of the licensed area of the premises. The second was between the same parties in respect of the guesthouse part of the premises. Mr Nolan believed Bowbreaker Ltd was the operating company of the defendants.
In a search at Companies Registration Office it was discovered Bowbreaker Ltd had been struck off from the Register of Companies last December.
He was advised that the dissolution of the company put the licence in immediate peril as the company was currently trading unlawfully with the licence holder no longer in existence and that this was contrary to provisions of the Intoxicating Liquor Act and the Licensing Acts.
The licence may be subject to forfeiture as a result of the offence, which was ongoing.
In the event that the premises ceased to be a licensed premises due to the conduct of the defendants, the credit union's security would be reduced drastically.
To remedy the matter and preserve the licence, the defendants would either have to restore the company to the register or carry out an interim transfer of the licence to their own names, it having previously been in the name of Mr Bohan. To do either they would require to have their affairs and the affairs of the company in order in respect of their liabilities to the Revenue Commissioner and the credit union had no way of knowing whether this was in fact the case.
It was clear some serious difficulty occurred which caused the company to be struck off.
The appointment of a receiver would enable an application for an interim transfer of the licence to take place.