THE HIGH Court has appointed accountancy firm KPMG as examiner to Masterchefs, the company that provides corporate catering at high-profile sports and other events.
Managing director John Coughlan confirmed yesterday that the company sought to go into examinership voluntarily following the loss of a key contract which has left it with short-term cashflow difficulties.
While companies are placed in examinership they have High Court protection from their creditors. The system is designed to allow the examiner to come up with a scheme of arrangements to rescue the business and pay part or all of its debts.
Masterchefs recently lost the contract to provide catering at Leopardstown racecourse after it was put out to public tender. It is believed it was narrowly beaten on price by the eventual winner, the British-based Compass Group.
The deal was worth more than €3 million to Masterchefs, and the venue's four-day Christmas festival would have contributed €1.2 million to this figure, which was its main source of cash during a traditionally quiet December to March period.
The loss of revenue from the Christmas festival means that the company will have difficulty facing immediate liabilities to trade creditors and its banks.
Its other key contracts are for catering at Punchestown, Fairyhouse and the Curragh, as well as the Irish Open golf tournament.
Mr Coughlan said yesterday that Masterchefs had its main contractors and suppliers on board.
"We have spoken to everybody and they've been supportive, and we are confident that the business can continue."
He added that Masterchefs was working on a plan to cut costs, and was bidding for new business.
The company's assets net of liabilities stand at €253,000.
Masterchefs has been trading for more than 20 years, and employs up to 600 catering staff at bigger events.
KPMG partner Kieran Wallace has been appointed interim examiner. The issue is due back in the High Court in early December. The examinership runs for an initial 70 days, and for a further 30 days with court approval.
Mr Coughlan said he was hopeful the process could be concluded within the 70 days.
