Provisional liquidators appointed to Cork medical supplies company

Provisional liquidators have been appointed to a Co Cork-based medical supplies company that claims it is owed €1.2 million by the Health Service Executive (HSE).

PMD Device Solutions Ltd petitioned the High Court for the appointment on Friday, acknowledging that it is “clearly insolvent”, with over €14.6 million in liabilities set against €4.6 million in assets.

The company, with a registered office at Model Farm Road, Cork made a loss of over €900,000 over the last 13 months, the court heard.

Separately, PMD is subject of a court order restraining it from selling, transferring or providing access to patient data to any third party outside of the HSE, after the health authority claimed the company demanded payment to “maintain the integrity” of sensitive patient data in its possession, and threatened to sell it. PMD strongly denies the allegations.

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According to court documents, the HSE was PMD’s largest customer, and since December 2021, provided various services to acute hospitals across the State – including the supply of respiratory rate monitoring devices, installation services and support.

Following the transfer in management of one of its contracts with the HSE from the health authority’s acute services department to regional administrative divisions, PMD experienced difficulties in receiving payment for its service, it is claimed.

This, coupled with Revenue’s revoking of the company’s tax clearance certificate, resulted in payments remaining outstanding.

PMD says it is owed approximately €1.2 million by the HSE, and has issued High Court proceedings against the health authority claiming damages for breach of contract. The HSE is contesting the matter.

The company has no shareholder financial support and “no prospect of trading out of this insolvency in the short to medium term”, according to the documents.

Petitioning for the appointment of provisional liquidators, the company says it believes there are parties interested in acquiring the company’s various assets.

The sole shareholder of PMD is its Swedish parent company PMD Device Solutions AB. The latter filed for bankruptcy in the Stockholm District Court last December.

Mr Justice Brian Cregan agreed to appoint BDO’s David O’Connor as provisional liquidator to the company.

Ross Gorman BL, appearing for PMD, told the court that Mr O’Connor, as an experienced liquidator, will likely be “very cognisant” of the obligation to comply with orders previously granted by the High Court pertaining to the preservation of the patient data in PMD’s possession.

The judge reiterated that those orders still apply, notwithstanding the appointment of the provisional liquidators.

Claire Hogan BL, for the HSE, said the health authority’s position on the provisional liquidation petition was “neutral”. She said that Myles Murray, PMD’s chief executive, has been engaging with HSE in respect of complying with the court orders relating to the patient data.

The case was adjourned until next month.