A High Court judge has confirmed the appointment of an examiner to a Co Killkenny based print product company that employs 49 people.
Insolvency practioner Mr Neil Hughes was confirmed as examiner of Colour World Print Limited located at Purcellsinch Industrial Estate, Dublin Road in Kilkenny by Mr Justice Richard Humphreys at a sitting of the High Court on Tuesday.
However the judge adjourned an application to confirm Mr Hughes as examiner of a related company Koverto Envelopes (Ireland) Limited. That firm makes envelopes and operates from the same premises as Colour World Print. It employs a further 21 people.
The adjournment was granted to allow Koverto amend its application to have an examiner appointed.
Mr Hughes was appointed as interim examiner by the High Court to both companies in late July.
The adjournment was granted after a creditor of Koverto, Trimfold Envelopes Ltd which is owed €750,000, objected to the applications on grounds including there is no clear evidence that the firms require the protection of the courts.
Gary McCarthy SC, appearing with Ross Gorman Bl, for Koverto and Colour World dispute this and argued that because of the relationship between the companies an examiner must be appointed to Koverto or both it and Colour World will collapse with the loss of all jobs.
Revenue, which is also a creditor of the firms, did not object to the appointment.
The companies had sought the appointment of an examiner so that a scheme arrangement, which if approved by the majority of the firm’s creditors and the High Court, could be put together to allow the firms survive as going concerns.
In a report presented to the court to Mr Justice Humphreys, Mr Hughes stated there had been an initial nine expressions of interest in the firms by potential investors.
This had now been narrowed down to four parties, the report added.
The firm's, whose directors are Walter and Francesca Lanigan of Airport Road, Kilkenny sought the protection of the court on the grounds they were insolvent and unable to pay their debts.
The financial position of Colour World Print, Mr McCarty said, had deteriorated in recent years. That company has secured liabilities which Koverto has provided provided guarantees for.
There had also been a downturn in the firm’s trade which had resulted in cash flow issues, counsel added.
Following submissions from the parties Mr Justice Humphreys said he was confirming Mr Hughes as examiner to Colour World Print.
However he adjourned the application in relation to Koverto to a date in September so that the application could be amended.
