Interim examiner appointed to Ferns business
Published 27/09/2015 | 15:16
An interim examiner has been appointed by the High Court to a County Wexford based steel fabrication business, which employs 24 people.
The aim of seeking court protection and examinership to Lodgewood Engineering Ltd, of Ferns Co Wexford is to allow a scheme to be put in place with the firm's creditors, which if accepted by the High Court, would allow it survive as a going concern.
As well as operating a steel fabrication business the company also operates a garden machinery centre and also sells tools and equipment online.
The company, incorporated in 1997 had been profitable until 2009.
However, due to the economic recession, and in particular its reliance on the construction industry, it has been loss making since 2010.
last Thursday, Mr Justice Henry Abbott granted an application by barrister Ross Gorman, for the company, for court protection and the appointment of Neil Hughes of Hughes Blake Chartered Accountants as interim examiner.
The judge said he was satisfied the company was entitled to protection and the appointment of an interim examiner. He made directions for advertising the petition and returned it for hearing on October 19th
The Judge further directed that the company's creditors be put on notice of the application for the appointment of an examiner.
Mr Gorman in seeking Mr Hughes' appointment said an independent accountant's report had shown that the company has a reason prospect of survival if certain steps are taken.
These steps include that the company secure funding during the period of court protection which will provide for the payment of an appropriate dividend to creditors, and fund future cash flow requirements.
Also required is the acceptance of a scheme of arrangement by the creditors and members of the company by the High Court. This scheme may include the partial write down of monies owed to existing creditors.
Counsel said the report stated that it would be more advantageous to creditors and members of the company if it continues to trade as a going concern compared to if it was wound up.
The counsel said the company was seeking the appointment of an examiner after the firm struggled to obtain supplies in recent weeks.
The appointment of an examiner, who would deal with suppliers, would ensure that supplies are obtained by the company and would secure the jobs of the firm's employees.
The company's directors feared for the firms survival if it was unable to obtain supplies, counsel said.
The firm's directors are William Plummer and his wife Margaret Plummer, both of Ferns.