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Kernel loses action over Ely group
Sunday, April 05, 2009 By Ian Kehoe
Kernel was one the group’s main investor s and had claimed it was owed €2.45 million by the group. However, Ely contended that the sum involved was only €1.2million.

Following a request from the company’s examiner to clear up the issue, the High Court ruled in favour of the company. The Ely Medical Group owns the Optilase laser eye surgery business, the Therapie beauty clinic and the Body Clinic in Dublin.

‘‘At today’s hearing, the court held that an agreement related to the transaction between the partners in 2006, drafted by our then solicitors, did not have the effect we believed it to have,” said Niall Olden, chief executive of Kernel Capital.

‘‘The result is, the documents encapsulate the sum of €1.2 million rather than €2.45 million. Our present legal advisers are looking into the consequences of this and ultimately we do not anticipate our fund being at any loss.”

The court also heard last week that Paul McGlade, the Belfast entrepreneur who founded the Ely Group, is set to retain control of the company after agreeing a deal with the firm’s examiner, Dublin accountant Neil Hughes.

McGlade has been selected as the preferred bidder for the group, beating competition from Ultralase, a British firm that runs a chain of laser eye surgery clinics. McGlade has signalled that he is willing to inject further capital to and refinance the business.

McGlade has invested €5 million in the business over the last three years and was keen to remain involved. The company is due to go back to court in the coming weeks to present a final scheme of arrangement.

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