Navan Carpets Ltd has debts of more than €8.5 million and its unsecured creditors are facing a shortfall of €947,000, its directors told a creditors' meeting yesterday.
The company was wound up with the loss of more than 200 jobs when the High Court appointed Mr David Hughes of Ernst & Young as provisional liquidator at the beginning of the month. Creditors yesterday formally appointed Mr Hughes at a meeting in Dublin.
The directors issued a statement of affairs to creditors showing that the company's liabilities are €8.52 million, while its assets are likely to realise €7.57 million. The shortfall, to be borne by unsecured creditors, stands at €947,000.
The biggest liability is a €3.6 million unsecured inter-company loan from its holding company, Navan Carpets Group Ltd. The Revenue Commissioners are owed €569,000 in income tax, social insurance and VAT.
Employees' entitlements come to a total of €2.51 million. The Department of Enterprise, Trade and Employment will process their statutory entitlements.
Mr Hughes has already agreed the sale of the company's brands and stock to British-based Victoria Carpets for €2.5 million.
He expects the company's land and buildings to fetch €2 million. Plant and machinery will realise €900,000 after Lombard & Ulster is paid €710,000 on foot of a lease agreement. Ulster Bank Commercial Services Ltd has a charge over the book debts amounting to €218,000.
