Capitol Bars: Directors buying back assets from liquidators

OK, so we were a small supplier to some of the Capitol Bars companies which went into provisional liquidation in September. Within a few days of the appointment of a liquidator, they announced the sale of the assets back to a “new” company controlled by the directors/shareholders of the company in liquidation. In fact, they immediately signed a caretaker’s agreement with this new company while the sale officially goes through.

Tens of millions of debt written off (68m if I recall correctly). Unsecured creditors completely wiped out. Same people back in charge of the assets, with a clean slate.

Because of the speed of this, it was obviously carefully planned.

Because this is a sale back to the same people, it goes to the high court for approval next week. My question is, is there any chance that the High Court will refuse permission? Is there anything that we can do as a small creditor, without incurring big legal fees? Can we easily object to the High Court without involving solicitors, or complain to the ODCE?

I could ask our solicitors, but they’d probably charge me more than we’re owed just to tell me :slight_smile:

I thought there was some legislation to regulate against “pheonix” companies.

Could you ask the judge to award you payment in kind from the new owners? What about a tab in Cafe en Seine to the value or aporportion of the value of your debt?

It might ease the pain XD

Make an offer to buy the damn thing, the liquidator cannot refuse you !

Of course it will never happen with NAMA :angry:

Isthere not some area that looks at commercial reality over legal form?

So, there are indeed laws that aim to prevent this sort of thing; this is why the liquidators have to go back to the High Court to ask for permission to sell the bars & hotels back to the same guys (minus the debt). The shareholders have offered a small amount of money (65k I believe) to buy the entire group back, but apparently this is all going to the Revenue, with nothing left for unsecured creditors.

There is no way that the liquidators have made a concerted effort to sell this for market value; they had it sold within a few days of being appointed so most prospective buyers would not have even heard it was for sale. So I guess if someone offered a small bit more, the liquidators would be in an awkward position. Anyone got 65k to spare? :slight_smile:

I know we’ll never get the money we’re owed, but I hate the thought of these fsckers getting away with burying their debts like that…

(This is all a matter of public record, in case the mods are nervous)

I’m sure I heard about this some time ago to be honest unless it common in the trade to do this sort of thing and I’m mixing it up with another instance of this behaviour.

I’m sure you’re right. Doesn’t make it OK though.

OK, on top on the 65kish, what would it take to get these pubs up and running again? I hear 1.5 years of losses, several million cash injection…issues with certain of the pubs concreting over limited beer lines, staff issues, limited kitchen facilities, traffic flow on Dawson St. you name it. What are the compelling reasons to make one invest - aside from losing old stomping grounds?

Turn up in person and lodge an objection. My housemate tells me that a “Lay objector” will be treated like royalty. I’ll ask him to elaborate tomorrow when we’re sober.

I’m good for a few k. BD It sounds like fun.
The major problem here is your buying business and pub licenses but not the property. The properties are owned privately by whom? You guessed it, the directors, The O’Dwyer brothers.

Pray tell more!

I’m cool with throwing in a little too. I’ll only want the pub for one week of the year, I just always wanted to own one. Perhaps a PLC could be formed, inviting the public to buy stock.

Its was only a matter of time till a bunch of pinsters formed a pub consortium BD

Twill be great for future fundrasing & dig out gigs… thats bass! 8DD

Next, BANK of pin

Jesus lads if it’s a pub you want, a lot nicer places are available, like the Dawson Lounge.

A class place that. Personally, though the Dame is one great place for a quiet pint to watch the world wander in and out and another is the Sackville Lounge, which has the most fabulous victorian urinals (it’s worth the false beard just to see them ladies).

I prefer the Palace on Fleet street or Mcdaids on Harry street.

So do I although the Palace became a lager lager lager stag venue during the Tiger years. Not forgetting Kehoes either if McDaids deserves the mention .

Nah, I’d go to the over before the Palace. I had my first snog with Mrs. YM in McDaids, outside McDaids, at the top of Harry St. … I proposed to her in the Stag’s Head, also another grand spot, as long as it is not in vogue. The downstairs was a disaster, IMO, the upstairs not too bad, but still unnecessary to the place.

Is that the Dame Tavern YM? I assume you’re not one of the lads in the painting of all the regulars which hangs at the side of the bar? Or am I assuming incorrectly?