Examinership of Powerscourt Distillery opposed by €21.5 million creditor
PNC Bank, which is owed €21.5 million by the company, had a receiver installed over the business on June 26. It opposes the appointment of an examiner in place of the receiver, the High Court heard on Thursday.
The examinership petition before Ms Justice Eileen Roberts was brought forward by shareholders and directors Michael Peirce and Gerard Thomas Ginty, with the consent of Ashley and Caroline Gardiner, representing a combined 25.61 per cent interest in the company.
The examinership petition details the financial status of the distillery noting that while it is 'currently unable to pay its debts when due' the most recent valuations of the company's stock to exceed its liabilities.
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Two independent stock valuations, one in October 2024, and a more recent valuation in February 2025, placed the value of their stock at €41 million and €38 million respectively.
The court appointed Mr Joseph Walsh of JW Walsh accountants as interim examiner over the company on June 30, noting that estimated debt stood at €21.5 million to its sole secured creditor, PNC Financial Services UK Ltd by way of a master financing agreement, and further debt of €4.6 million to Azets/Baker Tilly EIIS.
Barrister Stephen Brady, representing PNC Bank, said on Thursday, that defaults on the agreement stretched back to Autumn 2024 and that attempts to secure additional investment into the company had not 'yielded anything like the level' needed.
He said the closest the company had come was around €5 million in a single investment, which 'was not even successful'. Mr Brady said his client was opposed to the petition for examinership and pushed for a decision to be made on the matter as quickly as possible.
Mr Brady described the prospect of examinership as 'singularly unattractive', warning that the distillery is reliant upon funds from PNC and expressed concerns that the cost of the examinership would end up being borne by his client.
PNC appealed for the company to continue into a 'trading receivership' under Interpath.
In an affidavit, Mark Lowrence, the UK portfolio director for PNC Business Credit, argued against the appointment of an examiner over the business, noting that the board of the company were part of a unanimous decision to appoint the receiver on 26th of June.
The PNC affidavit said it was 'extraordinary' that the shareholders 'having been part of that unanimous board resolution' have petitioned for an examiner 'in direct contraction to the wishes of the company'.
'PNC has a serious and legitimate concern that the companies do not have a reasonable prospect of survival,' he said, pointing to the 'failed investment process already undertaken' and the 'unwillingness of shareholders to support the working capital' of the company so far.
Barrister Declan Murphy, speaking on behalf of Powerscourt Estate, noted his client was the single largest unsecured creditor, by way of rent payments for the buildings the distillery is located in and was neutral to the petition. At the start of June rent arrears were above €550,000. The Estate is also the largest shareholder in the company, with a holding of nearly 38.5 per cent.
Representing Powerscourt Distillery, Mr Barry Cahir, noted the company's finances are under 'close review', saying its affairs are 'finely balanced'. Mr Cahir said the company was in favour of the examinership.
Ms Justice Eileen Roberts adjourned the case until July 17th given the 'complex' nature of the matter and to permit the petitioners to respond to the recent affidavit submitted by PNC Bank.
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