Liquidator appointed to firm set up to deliver arthouse cinema

A liquidator has been appointed to Solas Galway Picture Palace, which was set up to deliver the city’s arthouse cinema.

It is understood a creditors’ meeting was held on June 21 in the Connacht Hotel, and a liquidator was appointed.

According to documents filed with the Company Registration Office, the following resolution was passed: “That the company cannot by reasons of its liabilities continue in business, and that it would be wound up by way of a creditors voluntary winding up”.

It resolved that Conor O’Boyle of O’Boyle and Associates be appointed liquidator to wind it up.

The company had charitable status and was not trading for profit.

The most up-to-date financial statements available show that the company had accumulated losses of over half a million euro (€541,920) and owed its creditors more than €4.5 million.

The net book value of tangible fixed assets was €3.9 million at the end of 2014. However, the Irish Film Board and Arts Council, had issued a charge of the assets of the company. The Western Development Commission had issued a charge over the building under construction until terms have been met.

The financial statements, signed in September 2015, said: “The company has prepared the accounts on a going concern basis. While the company has a deficit of €541,920 at year end. The directors are confident that the company can secure funding to complete the project and for the company to return to a positive situation.”

The project has been dogged by a series of delays since land at Merchant’s Road was donated by Galway City Council over 10 years ago, and it has been a massive drain on the public purse.

Element Pictures, which runs the Light House Cinema in Dublin, has been tasked with completing the project, and has secured a 30-year lease from the City Council to operate it. The liquidation does not impact that arrangement.

In March of this year, the Charities Regulator confirmed it had commenced a “statutory investigation” into the affairs of Solas-Galway Picture Palace Teoranta.

A spokesperson said: “Issues have arisen in relation to the proper treatment of the charity’s assets in a commercial arrangement proposed with a new investor. The Regulator met with some trustees of the charity in October 2016 and subsequently, on November 17, 2016, issued a direction to examine certain books, documents and other records of Solas-Galway Picture Palace Teoranta for the purpose of determining if inspectors should be appointed to investigate the affairs of the charity.”