Effectively-known publican and restaurateur Jay Bourke is dealing with the prospect of chapter after his software for a private insolvency association (PIA) writing off €12.2m in debt was dismissed by the Excessive Court docket.
he businessman, who at one stage had pub and restaurant pursuits using greater than 1,000 individuals, has whole money owed of €13.7m.
A debt deal devised by his private insolvency practitioner was objected to by his essential creditor, Pepper Finance Company, which is owed virtually €12.3m.
The huge debt stems from Mr Bourke’s involvement in Bellinter Home, the Co Meath resort he co-owned with the late music promoter John Reynolds. Pepper stood to recoup simply €65,000 if the PIA had been accredited and claimed the association was unfairly prejudicial to its pursuits and that it could get a greater monetary return if Mr Bourke (55) was declared bankrupt.
When the matter was listed earlier than the Excessive Court docket this morning, Keith Farry, counsel for Mr Bourke’s private insolvency practitioner John O’Callaghan of KPMG, mentioned the applying may very well be dismissed.
It means a chapter petition filed by the Income Commissioners towards Mr Bourke in January can now be heard.
“The Income Commissioners are totally free to proceed towards Mr Bourke and it could seem they’ll adjudicate him bankrupt in the end,” mentioned Mr Farry.
It’s thought the dismissal got here after a key a part of Mr Bourke’s association fell via.
It had been proposed that some debt, between €570,000 and €750,000, can be repaid from a return on an funding Mr Bourke has in insurance coverage brokerage XS Direct, which he anticipated to be floated on the inventory market.
These plans have been scuppered when receivers have been appointed to the brokerage in February.
Mr Justice Mark Sanfey agreed to dismiss the applying with no order as to prices.
One excellent matter within the case might be handled later this month.
Niall Ó hUiginn BL, for Pepper, raised issues that the debt Income had been entitled to get well was overstated by €200,000 within the PIA and the courtroom is to listen to additional proof the on the difficulty.
The problem associated to an obvious lack of distinction between preferential and non-preferential debt.
Mr Farry mentioned there was a possible lack of readability in how these money owed have been categorised and that classes had been realized in that regard.
He additionally mentioned Income had sought to have all of what was owed to it, whether or not preferential debt or not, repaid.
Mr Justice Sanfey requested if the practitioner may present an affidavit on the difficulty.
“I don’t suppose I can let this go,” he mentioned.
“If the preferential collectors are overstated it reduces the quantity payable to the unsecured collectors. That may be a matter of utmost concern for any unsecured creditor,” he mentioned.
Had Mr Bourke been profitable in getting the PIA, the deal would have allowed him to maintain his €1.4m household residence in Rathmines, south Dublin.
Pepper had additionally objected to this, arguing that as a result of scale of his indebtedness, it was unreasonable for Mr Bourke and his spouse to retain their residence.
The Income, which is owed €558,000 in response to the PIA, had supported the association.
Each the taxman and Mr Bourke’s mortgage lender would have been repaid in full. Nonetheless, unsecured collectors akin to Pepper would have seen money owed owed to them considerably written down.
Mr Bourke has been within the pub, restaurant and motels enterprise since 1989, first opening the Wolfman Jack’s restaurant in Rathmines.
He went on to open Rí Rá nightclub, The Globe bar, the Entrance Lounge and Eden restaurant in Dublin, in addition to Bodega and the Savoy in Cork, the Garavogue bar in Sligo, and the Café Bar Deli group.
His debt to Income stems from a capital features tax legal responsibility of round €500,000 after he bought Bodega bar.
Mr Bourke tried to offset this acquire towards the substantial loss in worth of Bellinter Home.
Nonetheless, his try to take action was opposed and he misplaced appeals on the Tax Appeals Fee and later within the Circuit Court docket.
Different money owed relate to small financial institution loans he was unable to repay or from private ensures he couldn’t honour following the monetary crash in 2009.
He maintains that his corporations have been left weak by the crash because the properties they leased had upward-only lease opinions.
In 2017 the Excessive Court docket disqualified him from performing as an organization director for seven years arising out of the liquidation of the previous Shebeen Stylish pub on South Nice George’s Avenue in Dublin.
Mr Bourke was the supervisor of the Berlin D2 bar on Dame Avenue in Dublin when it was on the centre of controversy over a boozy brunch occasion in August 2020 at which social distancing rules have been breached,
The Berlin D2 incident led gardaí to efficiently object to the renewal of its licence.