The High Court has confirmed the appointment of an examiner for the Lynch Hotel Group.
The matter was before the Four Courts yesterday which heard the group needs to undergo restructuring if it was to survive as a going concern and that it had a reasonable prospect of survival.
The Clare family hotel group which employs over 450 full time workers, and has debts of over 22 million euro undertook the process of examinership last Thursday.
Justice Mary Finlay Geoghegan accepted the hoteliers’ affidavit which was accompanied by letters of support from many of the hotel’s creditors and union representatives testifying to the long and professional history of the Lynch Hotel Group.
The companies under court protection include The West County Hotel Ennis Ltd; the Clare Inn Hotel Ltd; Dale Park Properties Ltd; Pyrmont Ltd; LHG Catering Promotions Ltd; Breaffy Wellness Hotel Ltd.
The court also heard the main creditors include The Revenue Commissioners, AIB, and Bank of Scotland (Ireland) Bank of Ireland, Diageo and Celtic Linen Ltd.
Justice Finlay Geoghegan was told the group’s financial difficulties arose from a number of factors including low occupancy rates at Breaffy House Hotel, unsustainable leasing agreements over some hotels and the economic downturn.
