An interim examiner has been appointed by the High Court to a company involved in the sale and repair of mobile phones, laptops and other devices.
Cantec Office Solutions Ltd, operating under the brand name click.ie, employs 47 people in 10 stores around the country and an independent expert considers its business "viable", Ross Gorman, for the company, told the court.
On Wednesday, Mr Justice Brian McGovern granted court protection to the company and appointed Joseph Walsh, of Baker Tilly Hughes Blake chartered accountants, as interim examiner. The judge has returned the matter to February 23rd.
The judge made the orders on the petition of the company, with registered offices at Kells Road, Navan, Co Meath, supported by an independent expert’s report expressing the view the company had a reasonable prospect of survival provided certain conditions were met.
The firm was established in 2000 and last year underwent a takeover and change in ownership and management, the petition stated.
Its current directors are Shane O'Neill, New Bridge Drive, Sandymount, Dublin, and Umar Unwar, Clonfurrish, Ballynacally, Co Clare. It operated 30 stores at one stage but that number has been reduced to 10.
Asset value
In its petition, the company said, after the change in ownership, previously undisclosed and contingent liabilities came to light which had to be dealt with by the new management team. It also became clear valuations of some assets, particularly trading stock, did not properly reflect their realisable value.
Since the takeover, management has set about implementing the current business model which included securing supply chains and identifying and closing stores that are not profitable or do not fit the new model, it stated. Five stores had been closed, leaving 10 remaining, and by September last the company was trading successfully.
However, the company has various difficulties including with supply chain, stock and certain Revenue liabilities, the petition said.
While the directors accept the company is insolvent, they believe it has a reasonable prospect of survival, it also said. Discussions had been held with investors who had indicated a willingness to invest should the company be able to restructure its current liabilities.
The independent expert’s report also concluded it had a reasonable prospect of survival as a going concern, in whole or in part, provided various conditions, including securing supplier agreements and acceptance of an appropriate survival scheme, were met.
