MR Oliver Murphy, the chief executive of Hibernia Foods, waived his salary of £100,000 last year, according to the annual report filed with the American Securities and Exchange Commission.

The report also shows that the Russian beef ban was a particular threat to the US NASDAQ quoted meat exporter. However, it is understood the company remains committed to doing business with Russia.

Hibernia's annual report for 1995-1996 spells out its exposure. Russia accounted for 62 per cent of Hibernia's beef sales last year. Hibernia commenced production in Tipperary, one of the banned counties in November 1995 but the company can continue to kill cattle from outside Tipperary in the plant, without being in breach of the Russian ban on Tipperary cattle.

Mr Murphy said that the Tipperary plant was bought to have better access to European customers. "In November 1995, we commenced operations at the plant. In December, the company suspended operations because it could purchase beef at a more cost effective price from third party suppliers." In May last, operations were recommenced.

The results for the second half of the year were also hit by the cuts in export subsidies and by the BSE crisis. As a result of these and other factors, the company reported a loss of £543,489 in the year to end March 1996, against a profit of £430,170 in the previous 15 month accounting period.

Mr Murphy waived all compensation from Hibernia, other than out of pocket, business related, expenses. The waiver includes the £100,000 salary.

There have also been some complex loan transactions between Mr Murphy and Hibernia. He has a continuing personal guarantee of £500,000 on the company's borrowings and he owes the company £403,831 in interest free loans.

Hibernia is being sued for £200,000 by a supplier but the directors "at present believe there is no merit in the supplier's claim." It is also suing for £344,000 on foot of an insurance claim, but no assurance can be given that the company will prevail", the accounts say.

In April, when the fixed assets of a 51 per cent owned Dublin processing facility were sold, a former director who held the other 49 per cent started litigation to back his claim for another £44,000.