A LIQUIDATOR has been appointed to insurance brokers Andrew Reynolds and Associates, which has collapsed owing creditors almost £1.5 million.

The company's statement of affairs shows that there was just £59,534 in its section 48 account on October 21st. This is the account into which brokers are required by law to lodge payments by clients for insurance cover. The statement shows that ARA owes insurance company creditors just over £1.2 million.

Other creditors include AIB Bank which advanced a secured loan of £70,000 to ARA, Woodchester Finance which is owed £80,732, the Revenue Commissioners and employees.

The position on ARA's assets is unclear. The company has estimated that £700,000 of payments due to it from debtors can be collected. But industry sources have questioned this, arguing that most of the debtor figure is made up of premiums for renewals which they say ARA clients may now pay direct to insurers.

The company's only other asset appears to be office equipment valued in the statement at £35,815. According to a note in the statement some office equipment and cars have been repossessed.

At a 15 minute creditors' meeting in Dublin yesterday, Mr Des Guilfoyle of accountants Coopers and Lybrand was appointed liquidator. The early morning meeting, attended by about 80 people, was unusual in that there were no questions or comments from creditors who were mainly representatives of insurance companies and staff of ARA.

Immediately after his appointment, Mr Guilfoyle called a meeting of the Committee of Inspection, to which five representatives of creditors and three company representatives were appointed at the creditors' meeting. This meeting will "ascertain the views of the parties", Mr Guilfoyle said.

His comment followed ARA director Mr Tony Uhlemann's statement at the meeting that some of his company's client lists appeared to have been sold by insurance companies to other insurance brokers.

Mr Guilfoyle said he was not yet in a position to comment on Mr Uhlemann's statement. But he remarked that a creditors meeting with no questions from the floor was "most unusual".

The Irish Times has learned that two insurance companies have passed on lists of the ARA clients they insure to other brokers in recent days. Following meetings over the last two weeks between insurance companies and ARA directors, a number of insurance companies approached brokers and brokers approached insurers about taking over ARA clients.

Eagle Star, which is owed £254,535 and is the largest creditor, said it contacted its policyholders informing them that agency with Eagle Star had been cancelled and to advise them about future premium payments.

It advised these policyholders that future premium payments could be made through another named broker. Eagle Star did not receive a payment from this broker, but the broker agreed that he may waive his commission if he holds on to the business according to the company.

Eagle Star rejected the suggestion that it sold its list, arguing that it acted to protect its policyholders. But the company agreed that the issue of "who owns the client" is legally unclear and has never been tested.

The liquidator may have to seek advice on this issue because the client list may have been an important asset of ARA.

The ARA estimated statement of affairs shows that the company owes creditors £1.448 million. Preferential creditors are owed £46,160 - ARA's 22 employees are owed an estimated £35,000 in salary, redundancy minimum notice and arrears of holiday pay, while the Revenue Commissioners is owed £11,050 for PAYE/ PRSI and £110 for preliminary Corporation Tax.

Trade creditors are owed an estimated £1.4 million. ARA directors Mr Tony Uhlemann and Mr Seamus Kane appear on the list of trade creditors with Mr Uhlemann owed an estimated £16,000 and Mr Kane £8,724.

The company owes brokers representing Lloyds of London over £250,000 - McCalls is the largest Lloyds broker involved and is owed £125,758. Eagle Star is the largest trade creditor, owed £254,534.99, according to the statement. Other large insurance company creditors include Guardian (£124,430.89), Hibernian (£118,736.57) ICI (£89,980) and Norwich Union (£78,959.18).

Woodchester Finance is owed £80,732.64 and Irish Life Finance is owed £23,997.08 but a note in the statement points out that cars and computer equipment have been repossessed since October 21st when the statement was drawn up.