THE online computer services company, Internet Eireann, has debts of £120,000, according to the statement of affairs presented to a stormy creditors' meeting yesterday.
Creditors were told that the company has liabilities of £123,594, while its assets, which are mainly items of computer equipment, were valued at a mere £3,978.
Only a handful of creditors were present for the meeting at Buswells Hotel, but those who were complained that proxy forms had not been issued, and creditors had not been properly notified. Despite their small number, creditors succeeded in appointing their own liquidator, Mr Desmond Murnane of Murnane Nolan and Company.
Internet Eireann, which provided internet access to about 12,000 computer users, went into voluntary liquidation early last month after one of its suppliers, SM Communications, registered a £20,000 judgment against it.
Other major creditors include the Revenue Commissioners who are owed £15,000, the telecommunications company Sprint International which is owed £14,500, and the property company Designated Area Development which is owed £7,500.
During the heated 80 minute meeting the company's managing director, Mr Steve O'Hara-Smith faced a barrage of detailed question from creditors, many of whom said they were unhappy about the way in which Internet Eireann conducted its business. At the close of proceedings, the largest creditor, Mr Bill Sunner of SM Communications, told Mr O'Hara-Smith that he was going to be "like a boil on your backside until the day you leave this country".
Asked why two other directors were not present, Mr O'Hara-Smith said that his wife was at home looking after their infant son, while his mother in law "doesn't travel well", as she is 64 years of age.
Mr O'Hara-Smith claimed that the company, which was set up in 1994, ran quite successfully for the first few months, but had "a disaster" with the feeds which linked users to the internet in April 1995.
However, Mr Michael Hegarty, a solicitor representing SM Communications, said that Mr O'Hara-Smith's counter claim against his client which related to the "failure" of the feeds had been dismissed in the High Court.
According to Mr O'Hara-Smith, after the £20,000 judgment was registered, the directors realised that they could not meet this liability, and the company was placed in voluntary liquidation. In the months before its collapse debts were being met, he claimed.
Two directors are owed £10,250, while Mr O'Hara-Smith's brother, Nick, is owned £20,000. The meeting heard that Mr Nick O'Hara-Smith had acted as a guarantor for Internet Eireann's lease and loaned £20,000 to his brother so that the landlord of the premises could be paid.
Mr O'Hara-Smith said that after the £20,000 judgment was registered against Internet Eireann he had had talks with a rival internet provider, Indigo, about selling the company and sums of £100,000 had been mentioned.
Mr O'Hara-Smith agreed that given the company's debts of more than £100,000 in actual fact the sums in question placed a real value on the company of £200.000.
Mr Sunner said that Mr O'Hara-Smith had run up a substantial bill with a courier company for transporting "organically raised steak" from Blackrock to Celbridge for his dogs. The Irish Times has learned that about £400 of the £1,500 courier bill relates to the transportation of dog meat and herbal teas to the O'Hara-Smith home in Celbridge.
