Provisional liquidators appointed by High Court to Dublin nursing home operator

The High Court has appointed provisional liquidators to the operator of two Co Dublin based nursing homes.

On Wednesday Mr Justice Mark Sanfey appointed Dessie Morrow and Diarmuid Guthrie of Azets as joint provisional liquidators to Passage Healthcare International (Ireland) Limited after being satisfied the firm is insolvent and unable to pay its debts as they fall due.

The company had operated two facilities, the 74-bed Lucan Lodge Nursing home, and the 41-bed Sally Park Nursing Home in Firhouse, Dublin.

The judge said that company’s difficulties were primarily caused by the impact of the Covid-19 pandemic. This had resulted in lower occupancy rates at its nursing homes, and an increase in the firm’s costs, he noted.

The company entered into examinership in the hope that a rescue plan to ensure its survival could be put together. Last month that process, before the Circuit Court, ended when the examiner was unable to secure suitable investment required to put such a plan in place.

The court heard that following the collapse of the examinership process Lucan Lodge is being operated by, and its 92 members of staff paid by, the HSE.

The HSE has done this with a view to making alternative arrangements for Lucan Lodge’s residents.

The court also heard that the company ceased its operations at Sally Park in February after Hiqa raised issues about the premises, including fire safety.

The company expended large sums of money to rectify those issues, but ultimately it was not possible to resolve matters and Hiqa cancelled that facilities registration as a nursing home.

Over 40 employees at Sally Park were made redundant, and the residents were moved to other locations.

Represented by Ross Gorman BL the company applied, on an ex parte basis, to the court on Wednesday for the appointments of the provisional liquidators.

Counsel said that following the failure of the examinership process the company no longer has the protection of the court, and the firm’s board of directors had passed a resolution that it be wound up.

Counsel said that the appointment of the liquidators would “bring clarity to the situation,” and provide for the orderly winding up of the company.

Counsel said that while the employees are being paid by the HSE they remain employed by the company. Counsel said that the employees have certain entitlements, and a collective redundancy process needs to be entered into.

The company also has several trade creditors who must also be dealt with by the liquidators.

The liquidators will also address the issue of a lease the company had on the property where it had traded from, counsel said.

Counsel said the HSE and Revenue were not opposed to the application to appoint Mr Morrow and Mr Guthrie.

The Judge, after appointing the provisional liquidators, granted them several powers including the power to take control of the company’s assets, adjourned the matter.