Latest news with #examinership
Irish Times
4 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
5 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.
Irish Times
15-07-2025
- Business
- Irish Times
Cityjet has until next month to secure rescue
Troubled airline Cityjet has until mid-August to secure a rescue deal after the High Court extended an order protecting the carrier from creditors on Tuesday. Mr Justice Michael Quinn extended the court's protection and the appointment of joint examiners Kieran Wallace and Andrew O'Leary of specialist firm, Interpath Advisory , to August 16th. Lawyers for the examiners told Mr Justice Quinn that the matter was 'quite complex' and likely to take the full 100 days that the law allows to engineer a rescue deal. Mr Wallace and Mr O'Leary indicated shortly after their initial appointment in May that they were in talks to possible investors in the airline, which provides aircraft and crews to SAS and Lufthansa to fly regional routes in Europe. READ MORE Cityjet sought protection and the appointment of examiners in May after hitting difficulty paying creditors. However, an independent report on its finances said that the business had a reasonable prospect of survival if it were placed in examinership, as the rescue process is called. Examinership allows court appointed examiners up to 100 days to devise a rescue plan for a troubled company. The court provisionally listed the issue for hearing on August 14th.
Irish Times
11-07-2025
- Business
- Irish Times
Revenue demanded €1.7 million from Dylan McGrath's Fade Street Social six days before examinership petition
Dylan McGrath's Fade Street Social is expected to survive following a 'competitive bidding process', despite Revenue demanding €1.7 million from the 'insolvent' business just six days before a petition to put the business into examinership. Earlier this week, Dessie Morrow of Azets Ireland was appointed as an examiner over Prime Steak Restaurant 2012 Limited, which trades as Fade Street Social. The examinership petition said that should an examiner not be appointed, 'the company will have to go into liquidation' and its 86 employees 'will lose their jobs'. In an affidavit, McGrath said he is 'anxious' for an examiner to be put in place to 'reassure staff'. READ MORE There were six major issues facing Fade Street Social which were blamed by the petitioners including rising supply costs combined with the cost of living crisis' impact on the hospitality sector, the increase in the VAT rate, and the Covid-19 pandemic. The petition noted the impact of increased rental obligations caused by the sale of its premises by a related party in an attempt to reduce its overall liabilities. Increasing labour costs which the company says 'resulted in additional labour costs amounting to €171,902″ and was as a 'direct result of the increase in the minimum wage' also hit the business. A restructuring of the company ultimately reduced its overall employee cost through a 'significant reduction in hours worked'. One of the primary concerns for the business, however, was loans to other companies owned by Mr McGrath. Shelbourne Social Limited, the entity behind the Shelbourne Social, owed the company in excess of €1.39 million when it was wound up in September 2022. Loans to the entities behind Rustic Stone and Brasserie Sixty6 respectively were written off when they went through administrative rescue processes. The company availed of a debt warehousing facility afforded to it by the Revenue Commissioners, which alleviated some of the company's cash flow issues but ultimately, as the debt built up, the company was unable to fulfil its current and warehoused obligations. In total the debt to Revenue stands at €1.74 million, with a 'very significant' amount of this debt being leftover warehoused tax. VAT payments from 2020 through to 2025 are owed – nearly €1.2 million – alongside PAYE and PRSI payments of just under €550,000. A 21-day letter of demand for tax, plus interest, was issued to the company just 6 days before it filed for examinership. An independent expert report noted that the company may indeed owe more money to Revenue. The company had attempted to obtain additional investment in a bid to allow it to restructure and pay its debts. Among those close to the company, it is believed to have a good chance of survival, with recent profitability – prior to exceptional losses relating to intercompany loans – and recurring business in a popular area of town. An independent examiner's report noted the company had made a 'significant recovery' in turnover post-pandemic, with revenue returning from €1.47 million in the year ending June 2021, to more than €5 million in each of the past two financial periods. Turnover, however, remains below pre-pandemic levels.
Irish Times
10-07-2025
- Business
- Irish Times
Examinership of Powerscourt Distillery opposed by €21.5 million creditor
The main creditor of Powerscourt Distillery is opposing efforts to have an examiner appointed over the business. 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. READ MORE 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.
