The insolvency professional overseeing the voluntary liquidation of Nubility Captial Limited, a company which purchased the Nuremore Hotel and Country Club in Co Monaghan back in 2020, is seeking approval from the High Court to retain and eventually sell the property in order to repay its creditors. The hotel is not in operation currently.
Nubility Captial Limited entered voluntary liquidation and appointed Declan De Lacy as its liquidator in May 2023. This company is a subsidiary of the Huawen Foundation Limited, and both companies are directed by a China-UK businessman, Mr. Kai Dai, whose current location is not known.
Mr. De Lacy has also been named the official liquidator for Huawen and connected companies in the same group, by the High Court’s order in 2023. Huawen, the parent company, had loaned €8 million to Nubility for the procurement of the hotel between 2018 to 2020. However, it was dissolved following an application by Revenue, having not been reimbursed.
Currently conducting an investigation into Huawen’s financial matters, the liquidator has informed that all correspondence sent to Mr. Dai has been returned as ‘undelivered’, and he has not responded to any emails.
In a High Court hearing on Thursday, Mr De Lacy, represented by Neal Flynn BL, and instructed by Peter Boyle & Co Solicitors, requested that the hotel and golf club be transferred into his name, among several other orders under the 2014 Companies Act. He is also seeking permission to enter into a loan agreement in order to fund the property’s upkeep.
It was pointed out that the firm’s creditors put Nubility into voluntary liquidation in May, 2023 upon Mr De Lacy appointing his own company’s directors. In order to substantiate their request, counsel highlighted that the deeds transferring the previous owners’ interest in the hotel to Nubility are unaccounted for.
Moreover, the Property Registration Authority does not hold any registration record of Nubility’s vested interest in the hotel, and no stamp duty payment has been made to Revenue pertaining to the acquisition.
The counsel elucidated that the running expenses of this currently non-functional hotel amasses to considerable tens of thousands of euros per month. The overhead costs span insurance, golf course upkeep, and round-the-clock surveillance.
Contradicting the circulated local hearsay, the court confirmed that there are no intentions of utilising the said hotel to provide accommodation for those seeking international refuge. The liquidator desires to liquidate the property with the aim of settling the obligations with various creditors.
Yet, apprehensions loom that fire-setters may target the property, as cautioned by prevalent instances across the nation. To counter the threat, continuous security supervision is being facilitated by the liquidator.
The court was informed that Huawen amassed funds primarily from investors outside the EU for the now-defunct Immigrant Investment Programme. The financial investment in Huawen, as estimated by the liquidator, approximates at €65 million.
The funds borrowed by Huawen were to be reimbursed to the investors in 2022 via loan notes but the due repayment never came into fruition, asserts the liquidator. This led to debt recovery proceedings initiated against the conglomerate, finally resulting in the companies going into liquidation.
Through his inquest into the parent company’s operations, Mr De Lacy concluded evident “dissipation of Huawen’s assets” with untraceable funds. Mr Dai has been actively non-cooperative with the liquidator during discussions about various company matters, alleges the liquidator.
Arthur Cunningham BL, representing Revenue – a creditor, expressed his client’s solidarity with the liquidator’s application pertaining to Nubility.
Mr Justice Mark Sanfey adjudicated the case on Thursday, giving the liquidator the green light to serve short notice of the application to all relevant parties. The case will be heard again in court next week.