The Irish Times reports today that Kino, Cork's arthouse cinema, will be closing next month after a firm of architects began a High Court proceeding to recover €50,000 owed for design work.
Mr Hannigan said the debt arose from a plan he developed in 2003 to expand the 188-seat single-screen cinema into a three-screen facility with a total capacity of some 360 seats.
"We had got a grant of €750,000 from the Arts Council and the Film Board for the project which was costing around €3 million in total. I had managed to secure substantial borrowings but we were still left with a shortfall of around €1 million," he explained.
"Because of that shortfall, we were unable to proceed with the work so we never drew down the grant money but . . . we had to do a considerable amount of preparatory work including getting a design done and that's where the debt stems from.
"It's ironic really that our plan to actually expand the arthouse facilities in Cork has now resulted in the city losing its only dedicated arthouse cinema," said Mr Hannigan, who established the Kino in a former pool hall on Washington Street in November 1996.