The High Court has begun hearing a dispute between the directors of an Irish company, whose primary asset is a New York-based intergalactic theme restaurant, over the nature and implementation of rescue proposals for the troubled business.
In the proceedings, Mr Paschal Phelan, founder of the Mars 2112 restaurant at Times Square, New York, is disputing claims by three investor directors that a board meeting which purported earlier this month to launch a rights issue was improperly unconstituted.
Mr Phelan claims the proposed rights issue is intended to save the company from bankruptcy while the three plaintiffs claim Mr Phelan is trying to frustrate rescue proposals drafted by US attorneys.
Last week, the three investor directors - Mr Tim Brosnan, Mr Paul McGowan and Mr Patrick Gleeson - secured an injunction restraining Mr Phelan from taking any further steps in relation to the proposed rights issue.
The case was adjourned to allow Mr Phelan put in a reply and it opened for hearing late yesterday before Mr Justice Peart. The hearing resumes today.
Mr Bill Shipsey SC, for the three plaintiffs, said Mr Phelan was the original promoter of the business and was manager until 2002 when he was employed on a consultancy basis by the Irish company.
The plaintiffs represented investors who between them owned some 63 per cent of the share capital while the remaining 37 per cent was either owned or controlled by Mr Phelan.
The amount invested by the plaintiffs was some $18 million of a total investment of $21 million.
The main asset of the Irish company was the Mars 2112 restaurant. Since March 2002, the restaurant had been in Chapter 11 bankruptcy in the US, which was similar to examinership in the Irish courts. The business was still operating its intergalactic theme restaurant, premised on the planet Mars in 2112 with red rock walls, a stellar lightshow "and live aliens, whatever that means", counsel said.
Mr Shipsey said there had been a breakdown in the relationship between the plaintiffs and Mr Phelan for some time and, unless the impasse could be resolved, Mars 2112 would be subject to a winding up application.