The High Court has assigned Aidan Garcia as a temporary liquidator, with restricted powers, to a firm involved in constructing luxury homes. Victoria Homes Ltd, whose founder Paddy Byrne has been previously limited but expired from being a director of a company, had already had receivers appointed to it. This comes after AF Construction Ltd, a creditor claiming that Victoria owes it approximately €447,000, applied for this action. AF Construction worries that any remaining assets not under the control of the receivers could be depleted by Mr Byrne.
On Friday, Judge Sanfey, having gained satisfaction, assigned Mr Garcia, clarifying that his jurisdiction would be limited to assets not currently under receivership. He does not wish for any interference in the duties assigned to the receivers. Victoria’s two lenders, who are owed around €8 million, already appointed the receivers, who have since gained control over various developing buildings, including an apartment complex located in Dublin’s Dundrum, which recently had a violent incident involving security provided by the receivers and some people representing Victoria.
The Court was informed that AF Construction, specialising in providing developers with timber roofing and other carpentry services, began to worry about the payment of its debt due to Mr Byrne’s actions. Graham Kenny, a solicitor representing AF Construction, which had called for the liquidator’s appointment, mentioned that his client was contracted by Mr Byrne to work on a development where Victoria were experiencing issues. Although the work was finished, the payment to AF would come from a separate, incomplete project’s revenues. Upon encountering more payment issues, additional work was required before payment was possible.
Once the debt owed to AF rose to €447,000, it became evident that the payment of the debt would be impossible as any profits accrued by Victoria would first be directed to one of its lenders, Lotus Decalia DAC. Mr Kenny, on behalf of AF Construction, stated that a misrepresentation had been made by Victoria. Mr Kenny also pointed out that there have been five unpaid judgments against Victoria, collectively around €77,000, along with a mortgage judgment registered against it.
Regrettably, it was reported, the firm hadn’t submitted financial documents for a period of four years. The company, it was recognised in court, owes the Revenue approximately €500,000.
References were made by Mr Kenny to multiple media reports, which includes Mr Byrne’s ten-year prohibition from serving as a company director in the UK. This came after Mr Byrne’s bankruptcy declaration when he and another individual accrued approximately €200 million of unsettled debts.
For a span of five years, ending in 2018, Mr Byrne was also inhibited from performing as a company director locally.
With Mr Byrne’s past actions in mind, Mr Kenny’s clients were apprehensive that he might attempt to shield any possible assets from creditors.
Mr Kenny argued that a provisional liquidator, with limited powers that included the ability to request a financial update from Mr Byrne, would be suffice for the interim.
The judge agreed, based on this argument, to appoint the provisional liquidator.
In what the judge classified as an ex parte (single-sided representation) application, Victoria company was painted as one involved in dubious dealings, to put it mildly, based on the evidence provided.
AF Construction seemed to have been persuaded to undertake work in hopes of receiving payment for other projects, ultimately becoming entrapped, according to the judge.
Despite AF having received a considerable sum, it is still owed €447,000, the judge claimed. The judge also mentioned persisting judgements against Victoria, an outstanding debt of half a million to Revenue and the utter neglect to submit returns over a four year span.
The likelihood of assets being dissipated also seemed to be a risk, according to the judge. He decided to postpone the hearing to a future date, two weeks hence.