Blog: Debt payment saves Dunnes from winding-up order

Michelle Russell | 21 December 2012

Irish retailer Dunnes may be breathing a sigh of relief as it enters the Christmas break, assured it will still be trading in the New Year, after a wind-up petition has been withdrawn.

The group was reportedly facing a possible winding up of the company over its alleged failure to honour a EUR21.6m (US$27.9m) bill for building works at a shopping centre in Kilkenny. Dunnes had been issued with the petition by insolvent construction group Holtglen in a case listed before the Commercial Court, The Irish Times reported last month.

The pressure, however, is now off with the petition having been withdrawn following payment in full of the debt.

According to the Irish Times at the weekend, Brian O'Moore SC, for Dunnes, said the court was aware of the reasons why the money was not paid and that those reasons were "genuinely held".

Holtglen had constructed a shopping centre in Kilkenny in which Dunnes agreed to be the anchor tenant. The centre was completed in 2009 but Holtglen later became insolvent and its loans were transferred to National Asset Management, a company of the National Asset Management Agency (NAMA).

It is understood NAMA wrote to Dunnes in October last year warning that unless it was paid the sum within seven days, Holtglen would proceed to publish a petition to wind up the retailer on grounds it is "unable to pay its debts and/or it is just and equitable that it be wound up".


BLOG

Booker's move for Londis and Budgens sign of the times

UK cash-and-carry and convenience retailer Booker Group has struck a deal to buy the Londis and Budgens symbol retail chains from Ireland's Musgrave Group - and emphasised the changing retail landscap...

BLOG

US trade liberalisation faces bumpy ride

US efforts to liberalise international trade faced something of a roller coaster ride this week, as the Senate first voted down Barack Obama's proposals only to reach a compromise that would give the ...

BLOG

Talk of merger between Ahold and Delhaize returns

Over the weekend, there were fresh claims Europe-based food retailers Ahold and Delhaize are in discussions to join forces....

BLOG

Unilever claims sales boost from sustainability

Unilever today (5 May) published news on the progress it is making on its ten-year programme to double in size while reducing its impact on the environment - and claimed its efforts were becoming an e...

just-food homepage



Forgot your password?