A petition to wind up Dunnes Stores has been withdrawn from the Commercial Court after the retailer paid in full a €21 million debt to the developer of a Kilkenny shopping centre.
Holtglen Limited took brought the petition against the chain to enforce a judgment order from last March directing Dunnes to pay for building work on the Ferrybank Shopping Centre.
Dunnes Stores was supposed to be the anchor tenant at the development.
This morning its barrister, Brian O'Moore, SC, said whether good or bad, the retailer had genuine reasons for not paying the €21 million debt.
Concerns over project viability
One concern was the commercial viability of the shopping centre, which was described by Dunnes boss Margaret Heffernan in a letter to the National Asset Management Agency (NAMA) as an 'unmitigated disaster'.
Developer Holtglen Ltd. is insolvent and the debt was taken over by the State agency which warned Dunnes Stores in October that if it was not discharged in 7 days they would move to wind up the retailer.
Maurice Collins, SC, for Holtglen informed Mr. Justice Peter Kelly this morning that the debt was paid last night.
He said the developer regretted having to bring the winding-up petition which has now been withdrawn.
At the last court appearance Dunnes Stores - which employs 18,000 people was described as commercially 'rock solid'.