The High Court heard on Wednesday that in 2016, Treacy Hotels Group had an available budget of €8.5 million for the refurbishment of the Ard Rí Hotel, a notable property in Waterford City standing unoccupied at present. The group is pursuing legal action to ensure execution of a contract to acquire the hotel at a price of €1.6 million. They claim to have reached an agreement with American fund Cerberus on November 21st, 2016, confirming it with a non-refundable €160,000 deposit and showing the required funds.
The details of the agreement were given in court through an email dated November 22nd, 2016, from Andrew Geraghty, an advisor at Capita for Cerberus. He mentioned that Bob Lanigan, the representative for Treacy’s, informed him of the family’s €8.5 million fund for the hotel’s development. In order to move forward, Cerberus needed proof of such funds from Mr Lanigan, but this could not be provided until November 28th as the group’s accountant, Frank Wallace, had taken leave due to a loss in his family.
Subsequently, Cerberus decided to sell the property to competing bidder, Seamus Walsh, a businessman who purchased the hotel for €1.5 million. Evidence suggests that his initial offer, made on November 16th, was €1.25 million. Maria Keena, a member of the Treacy family, is requesting the High Court to command Cerberus subsidiary Promontoria Aran Ltd and EY’s receiver, Luke Charleton – formerly Ernst & Young – to finalise the hotel’s sale to their group.
Mr Geraghty had initially asked for the proof of funds within 48 hours on November 22nd, but extended this deadline to the 25th, as per Mr Lanigan’s information that Mr Wallace could only verify these details on the 28th. This development was communicated to Terry Byrne of Cerberus European Servicing Advisors (Ireland) Ltd by Mr Geraghty on the 25th.