Galway Bay fm newsroom - The High Court has been asked to approve schemes of survival that would allow seven companies which employ over 330 people controlled by Galway businessman Gerry Barrett to survive as going concerns.
The schemes have been put in place by insolvency practitioner Neil Hughes who earlier this year was appointed as examiner to the companies connected to a number of well known businesses.
These include the Five Star G Hotel, 4-star Meyrick Hotel, apartments, a retail park and the Eye Cinema.
The companies, who had sought the examiner's appointment, are now opposing the schemes of arrangement for the firms.
The companies, whose directors are Mr Barrett and Catherine Barrett of Drimbawn House, Chestnut Lane, Lower Dangan, Galway, sought the protection of the court after Deutsche Bank appointed a receiver over the firms.
The bank is owed more than €690m by the group after acquiring its loans from Nama in 2015.
It had opposed the examinership on grounds including it was an attempt by the companies to renege on a 2016 debt settlement agreement - which would have resulted in the sale of the group's assets to reduce its debt to the bank.
The bank is now supporting the schemes.
At the hearing on Friday Ms Justice Marie Baker was informed that under the schemes an investor called Waltzfire Ltd has offered to put €89m into the companies.
It would also put in an additional €9m as working capital to be used to enhance the firms assets.
The hearing stands adjourned and will resume next week, when lawyers for the companies will make submissions as to why the court should not approve the scheme of arrangement.
