Superquinn’s proposed sale to Musgrave Group is set to proceed after a petition seeking to have the company put in examinership was withdrawn.
This morning, the High Court was informed the application by Superquinn for examinership was being withdrawn as a result of Musgrave, which intends to acquire the chain, announcing a €10 million fund is to be established to reimburse certain creditors of the company.
The scheme is dependant on the sale of Superquinn to fellow retailers Musgrave going ahead. The chain, which employs some 2,800 people, went into receivership last week.
This morning at the High Court, Brian O’Moore SC for the receivers and Bank of Ireland, told Ms Justice Mary Finlay Geoghegan that matters had been resolved between the parties and the petition seeking the appointment of an examiner could now be struck out.
Lyndon MacCann SC, for Superquinn and two of its directors, said in light the “very significant offer” made by Musgrave to suppliers, his clients were happy to withdraw their application seeking to have the company put into examinership, giving it protection for up to 100 days from its creditors.
Counsel said his clients were “now supporting the receivership process”.
Counsel added his clients had “nothing to gain personally” in seeking to having an examiner appointed to Superquinn. Counsel said they entered the process to ensure that employees and suppliers of the company “were properly looked after”.
Rossa Fanning, for Musgrave, said his clients are “very relieved” with the course of action being adopted.
Ms Justice Finlay Geoghegan, in striking out the proceedings, welcomed the fact an agreement had been reached between the parties.
Joint receivers were appointed to Superquinn by a Bank of Ireland-led syndicate of banks last week.
Some €275 million was owed to the banks, mainly deriving from Superquinn’s property dealings, while unsecured creditors – mainly suppliers – were owed an estimated €55 million.
In a statement, Superquinn said it challenged the receivership decision to secure a better outcome for suppliers. “With the support fund in place, we now believe that the receivership process is in the best interests of our suppliers, colleagues and the many other partners of Superquinn and are happy to support the process,” it said.
The syndicate of banks, comprising Bank of Ireland, NIB and AIB, also welcomed the decision. “The decision will protect the Superquinn brand, its 2,800 staff and will ensure that the business can continue trading as normal in all Superquinn outlets,” it said in a statement.
News of the settlement came while the High Court was due to resume hearing a preliminary hearing whether, on July 18th last, the company made a valid resolution to petition the court for appointment of an examiner.
Two directors - Kieran Ryan and David Courtney - claimed such a resolution was passed. Another director, Simon Cantrell, disputed that and said he never formally agreed with his co-directors that the company should apply to the High Court to have an examiner appointed to the company.
The court was also asked to decide whether that petition was brought within the three-day period stipulated under the Companies Act.
