The High Court has confirmed the appointment of an examiner to companies involved in the manufacture of ice-cream and cream liqueurs.
The court last month appointed insolvency expert Shane McCarthy as examiner to Silverpail Dairy (Ireland) Unlimited Company and a related entity, Havana Company Unlimited, on an interim basis.
On Wednesday Mr Justice Michael Quinn confirmed Mr McCarthy as examiner to the companies after receiving a report on the examinership to date.
Silverpail employs 82 full-time staff, as well as several contract workers at various times of the year, from its facility in Fermoy Co Cork.
The court heard that despite the group’s current financial difficulties, it can survive if certain steps, including the appointment of an examiner and securing fresh investment, are taken.
A look ahead to 2023
What will 2023 have in store for the economy, the media landscape and the tech sector? Ciarán Hancock is joined by Irish Times business journalists Eoin Burke-Kennedy, Ciara O’Brien and Laura Slattery.
The examiner now has up to 100 days to agree a scheme of arrangement with the firm’s creditors, which if approved by the High Court will allow the company to survive as a going concern.
There was no opposition to the appointment, although Revenue represented by Arthur Cunningham BL said his client, which is owed €2.46 million by the companies, did have some issues it wants to see addressed as part of the examinership process.
Dairypail, which makes tubs of ice cream and Irish cream liqueur for the Irish, UK, EU, Middle Eastern and US Markets, petitioned the court for the appointment of the examiner, which will give the group protection from its creditors.
It claims the appointment was in the interests of all affected parties, including its creditors and its employees.
Creditors would do much better under a successful examinership compared to if the group was wound up, the court also heard.
The court heard that the business has traded successfully for many years but has experienced financial difficulties due to the impact of reduced sales during the Covid-19 pandemic, and increased costs such as energy and commodity prices,
The court heard that the business owes its trade creditors some €4.16 million.
Its main creditors include AIB Bank, Arrabawn Co-Op, IPL Protech Performance Plastics, and Carbery Food Ingredients as well as Revenue.
It had sought additional investment and had been engaged in discussions with a potential investor for several month, which ultimately did not work out.
