A HIGH Court judge has extended court protection for two companies producing and selling pottery under the Stephen Pearce brand. The move comes after the judge was told that two parties had expressed serious interest in investing in the companies.
Mr Justice Peter Kelly yesterday granted applications by Gary McCarthy, for examiner Kieran Wallace, to extend the protection period to February 20th next to allow more time to formulate a scheme of arrangement for the companies.
He also gave Mr Wallace until February 12th to present a scheme of arrangement to the court.
Mr McCarthy said Mr Wallace had identified two potential investors, one of whom had completed a due diligence and an offer was expected in days.
Mr Wallace expected to then be able to formulate a scheme of arrangement.
Making the orders sought, the judge said he was satisfied it was desirable that the existing court protection should continue given that there was a likelihood of securing an investor.
The judge had in late November appointed Mr Wallace as examiner to National Crafts Ltd and its wholly owned subsidiary, Penn Castle Ltd, both with addresses at Shanagarry, Co Cork.
The appointment was supported by the directors of both companies and by Bank of Scotland (Ireland), while the Revenue Commissioners adopted a neutral position.
The judge was told an independent accountant took the view, supported to some extent by an interim report from Mr Wallace, that the company could survive provided certain conditions, including new investment and agreement on a scheme of arrangement, were met.
The court heard the companies had a shortfall of some €277,810 and, if wound up, its liabilities would amount to €1.48 million.
The judge also, because of significant differences between the directors, made an order allowing Mr Wallace exercise the functions of directors and shareholders.
That order was on consent of the directors who accepted there were significant differences between them.
National Crafts Ltd was incorporated in 1987 and its directors are Stephen Pearce, Patrick Tattan, Michael Tattan and Lauren Pearce. Penn Castle Ltd was incorporated on June 4th, 2003.
Michael and Patrick Tattan have alleged unfair dismissal, outstanding wages and oppression of minority interests.
Both men have also expressed concern about payments made to Stephen Pearce and how their contracts were terminated.
Mr Pearce said there was a dispute between the shareholders but he believed he had, at all stages, acted legally and for the benefit of the company.
National Crafts Ltd produces and sells pottery under the Stephen Pearce brand. Its business reached a peak in 2003 with 55 employees. The company began to incur trading losses in 2005 and also incurred moderate losses and falls in turnover in 2006 and 2007.
Its wholesale turnover dropped by 26 per cent to €626,000 in the first 10 months of 2008.
