Receiver sent into Hibernia Foods

Hibernia Foods, the Dublin-based, Nasdaq-quoted food manufacturer, has been placed into receivership by General Motors Acceptance Corporation, which had provided a £17.25 million (€24.8 million) facility to the firm.

Last week the company said its chief executive and chief financial officer were to go in a major boardroom shake-up designed to improve the finances of the loss-making company.

However chairman and chief executive Mr Oliver Murphy, who has a 9 per cent stake in the company, and finance officer Mr Colm Delves separately secured interim injunctions in the High Court on Thursday of last week, restraining the company from taking any further steps towards implementing the decision.

Late on Friday evening the company was placed into receivership.

When announcing the boardroom shake-up earlier last week the company's board said it had an "aggressive business plan" that it was to implement to "significantly improve the company's financial results".

The interim injunction orders granted to the two executives in Dublin were to last for one week.

Last August the company presented unaudited accounts showing operating losses of €6.7 million for the year to March 31st, 2003, on the back of flat sales of €200 million. Its losses excluded a €4.7 million charged associated with the closure of a facility in Bristol, in the UK, and other restructuring moves.

Hibernia began life in the Irish meat industry but branched into ready-made desserts and confectionery products in the mid-1990s. Its brands include Entenmann's cakes and Sara Lee desserts.