Sunday 23 October 2016

Mansion sold for €7.4m but AIB wants orders to look at O'Reilly finances

Tony O'Reilly's estate Castlemartin
Tony O'Reilly's estate Castlemartin

BUSINESSMAN Tony O’Reilly’s former Irish estate in Kilcullen Co Kildare was sold for €7.4m last January, a court has been told.

The bulk of the proceeds of the sale of Castlemartin have gone towards reducing his personal debt to AIB to around €14.3m.

However, the Commercial Court was also told that AIB  wants to cross-examine Mr O’Reilly in court as to whether he has any other means of satisfying the €22.6m judgment entered against him last June.

The court heard he is to participate in the equivalent of our personal insolvency arrangements in the Bahamas where he has a home. His doctor in New York said last month the now-79-year-old should not travel for at least the next two months, AIB said.

Judgments for €18.5m and €4.1m respectively were also entered last June against two of his investment vehicles,

Cyprus-registered Indexia Holdings and another company called Brookside Investments Ltd. Indexia’s debt now stands at around €10m following the sale of 8.9million shares in Independent News and Media for €1.5m, AIB senior manager Mark Harris said in an affidavit.

Brookside’s debt is still €4.2m as an estate in Glandore in Cork, Shorecliffe House, which was Mr O’Reilly’s Irish home, has not yet been sold. Mr Harris said receivers were appointed to sell Shorecliffe but it remains on the market and it is hoped to find a buyer in the near future.

While these measures to meet the debt have taken place, Mr Harris said Mr O’Reilly and the two companies have failed or refused to consensually disclose other financial information. As a result, AIB brought an application before Mr Justice Brian McGovern for an order that Mr O’Reilly and others connected with the companies attend before the Commercial Court to be examined in relation to any other assets. The matter was adjourned to next month.

The bank is seeking orders that Mr O’Reilly disclose records and accounts relating to the following companies: Galicia Management Ltd, Birchfield Holdings Ltd, Balinae Enterprises Ltd, Araphoe Investments Ltd, Glandore Ltd, Arquette Ltd, Collins Hill Investments Ltd and Halsey Investments (Cayman) Ltd.


The bank wants orders allowing it to examine under oath Elena Mixahlidou and Xrista Theodrou, directors of Indexia, along with company secretary  Eirene Loytee. It also seeks up-to-date accounts from Indexia.

It also wants to examine Pauline O’Donavan, director of Brookside and company secretary/director James Kelly, and is also looking for copies of its latest audited accounts.

It wants an order requiring the defendants to furnish charts displaying the ownership structure of any assets indirectly and/or beneficially held by intermediate companies.

Mr Harris said he met with Bernard Somers, a representative of Mr O’Reilly and the two companies, last July when details were sought about their financial affairs. Mr Somers refused to do so unless a stand-still agreement, in relation to recovery of the debt, for a certain period, could be arranged.

This was not acceptable to AIB and there followed correspondence but as of last month, the defendants’ solicitors had failed to provide documentation sought in relation to their financial affairs, Mr Harris said. 

They have, however, said Indexia is to be placed in a creditor’s voluntary winding-up which will affect Brookside as it is a subsidiary of Indexia.

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