Latest news with #KillarneyBrewingAndDistilling
Irish Times
3 days ago
- Business
- Irish Times
Killarney Brewing company and Revenue in dispute over appointment of liquidator
Killarney Brewing and Distilling has sought the appointment of a liquidator over the business in a High Court hearing on Friday. A decision on the case has been postponed until Monday by Justice Michael Quinn amid a dispute between the company and the Revenue Commissioners around who should be appointed as the liquidator. The distillery's staff were told that operations would cease on Thursday ahead of the hearing. The business was has been under examinership since mid-April but did not secure the investment necessary to keep the business afloat in time. Representing the company, Barrister Declan Murphy petitioned the court to appoint the existing examiner, Deloitte's James Anderson, as the liquidator over the company. READ MORE He told the court that Killarney Brewing and Distilling and its seven constituent entities had 'no alternative' other than liquidation and that the directors believed the time had come to bring the life of the business 'to an end'. Mr Murphy said it was a 'sad day' for the investors, directors, workers and the broader community in Killarney, Coounty Kerry, and that the company was 'very grateful' to the examiner for the services thus far. The court heard that the examiner, Mr Anderson was willing to be appointed as liquidator over the company. [ Killarney Brewing and Distilling staff told operations to cease Opens in new window ] Barrister Sally O'Neill, for the Revenue Commissioners, said she represented the largest unsecured creditor once discounting inter-party debts. She said Revenue was owed, across the seven petitioning companies, 'more than €1 million". She disputed the appointment of the existing examiner, petitioning the court to appoint Myles Kirby of Kirby Healy Chartered Accountants as the examiner instead. Ms O'Neill argued that Revenue should be heard in the decision as to who would be appointed as the liquidator, pointing to precedent set during the liquidation of Star Elm Frames Ltd. David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 Mr Murphy said he was 'taken by surprise' by the stance of the Revenue Commissioners over the appointment. The court heard that Revenue only held a small part of the overall debts in the group of companies. . Mr Murphy said he did not believe 'this particular tail should wag the dog' and said Revenue's interpretation of the Star Elm case was a 'misconception' of the case and was 'wrongfully applied'. Ms O'Neill argued that once accounting for inter-party loans and the secured debtors, Revenue accounted for a significant portion of the companies' debts. She said the petitioners were putting the views of the creditors secondary to the views of the company. [ 'Asset rich' Killarney Brewing seeks court protection from creditors Opens in new window ] Justice Quinn said that Revenue held a large portion of the debts in two of the companies - which were involved in construction. He said he had anticipated making a decision on the matter during the hearing but, after hearing the arguments would delay a decision to Monday, The court protection over the company has been extended until Monday when Justice Quinn is expected to rule on the case. Should the examinership be unsuccessful, it is understood that Bailmo Limited, the sole secured lender which holds debts in excess of €3 million, will place a receiver over its security, the Killarney Brewing and Distilling property in Fossa. Bailmo was neutral on who would be appointed as liquidator. Founded by local businessmen Tim O'Donoghue and Paul Sheahan in 2013, the parent company of the group has not filed accounts since 2023. In its more recent filings with the Companies Registration Office, the company reported a turnover of more than €2 million for 2022. The business lost €1.61 million in 2022 and had accumulated losses of €4.15 million.
Irish Times
4 days ago
- Business
- Irish Times
Killarney Brewing and Distilling staff told operations to cease
Killarney Brewing and Distilling (KBD) has told staff it will cease operations. The Kerry-based company, which has been in examinership, informed workers on Thursday, according to a source familiar with the business. The case tied to the firm's examinership is expected before the High Court on Friday. A spokesman for the examiner declined to comment ahead of the court appearance. More than 50 jobs were at stake when the 'asset rich' but cash poor business entered examinership in April. READ MORE Ms Justice Marguerite Bolger originally appointed Deloitte's James Anderson as interim examiner on April 17, and later as examiner, in the aftermath of a failed bid to secure US investment. The examinership, which gave the business court protection for 70 days, was later extended. Barrister Declan Murphy, who appeared for the company in April, told the court that the company was currently asset rich but cash-flow insolvent and required the protection of the court from its creditors and the appointment of an interim examiner. He said the parent company owned seven other companies and boasted the largest independent brewery and visitor centre in Ireland. In a statement at the time, KBD said it had 'endured unprecedented challenges during and following the COVID-19 pandemic' as a result of 'surging raw material costs, significant supply chain disruptions, delays in opening the Fossa distillery, whiskey inventory supply gluts, and broader geopolitical uncertainties'. 'Collectively, these issues have placed significant pressure on the business and negatively impacted both revenue and profitability,' the brewery and distillery said. 'Earlier this year, KBD reached a preliminary agreement to merge with a US-based strategic partner. Unfortunately, that partner recently made the decision not to proceed with the transaction.' The brewery said examinership was the 'most viable path' for the company, in order to 'safeguard employment, stabilise operations in the medium to long term and secure a sustainable future'. Founded by local businessmen Tim O'Donoghue, Paul Sheahan in 2013, the parent company of the group has not filed accounts since 2023. In its more recent filings with the Companies Registration Office, the company reported a turnover of more than €2 million for 2022. The business lost €1.61 million in 2022 and had accumulated losses of €4.15 million.
