Talks aimed at resolving a dispute between Oxigen Environmental and ex-rugby star Shane Byrne and his brother William over the operation of a waste company are at an advanced stage, the High Court has heard.
The parties, in what is described as a bitter dispute, began discussions after it was revealed the brothers were prepared to offer €1.5 million to Oxigen for its 51 per cent share in the company at the centre of the dispute, AWD Waste Solutions Ltd.
The brothers, who are directors of AWD and have operated it for many years, hold a 49 per cent shareholding. Oxigen became involved in the firm eight years ago.
Last year, Oxigen secured interim injunctions against the brothers arising from allegations by it over how AWD’s affairs were being conducted.
Oxigen’s concerns included claims company books and records were removed and destroyed, that monies may be missing and about payments being made in cash.
The brothers deny any wrongdoing and say Oxigen’s proceedings were brought because it wanted to force them to sell their shares in AWD and wanted to cause maximum damage to their reputations.
In separate but related proceedings commenced earlier this month, Oxigen represented by Martin Hayden and Ronnie Hudson, claims the company is insolvent and seeks to have a provisional liquidator appointed to the company.
The brothers, represented by John O’Donnell SC and Richard Kean SC, oppose that application. They say the company is solvent and should not be wound up.
The application to appoint a provisional liquidator was before Mr Justice Michael Quinn on Wednesday.
After the sides asked for time to allow talks take place, the judge was informed on Wednesday evening by Mr Hayden that discussions aimed at resolving all of the proceedings were at an advanced stage.
On consent, the judge agreed to adjourn the matter for a week. If matters have not been resolved then the application to appoint a provisional liquidator will go ahead, said counsel.
The talks started after the court heard the brothers sought an adjournment of Oxigen’s application to have a provisional liquidator appointed.
Oxigen claims AWD is insolvent and unable to pay its debts of more than €490,000.
Oxigen, the court also heard, was no longer prepared to allow AWD collect and dispose of waste under a permit obtained and held by Oxigen.
The removal of the permit effectively meant AWD could not operate its business.
Oxigen said it took this step because AWD had been fined €500 by Wicklow County Council for a breach of the permit’s conditions and did not inform Oxigen of that.
Mr Hayden said Oxigen was concerned about the serious implications of the breach because, if there were two more breaches by AWD, Oxigen, as the holder of the permit, could end up being prosecuted.
Lawyers for the brothers claimed removal of the permit was an attempt to strangle the AWD business and part of a plan to stymie the Byrnes and force them to sell their shares in the company.
The court heard the brothers were prepared to offer Oxigen €1.5 million for its shares in the business.
Rubbish piling up
They claimed the removal of the permit would result in rubbish piling up in customers gardens and would damage the business.
Following talks, it was agreed the the permit would be reinstated, allowing AWD to collect waste until the matter returns to court next week.
Separate proceedings initiated by Oxigen last year, brought under provisions of the Companies Act, concern the conduct of the AWD affairs and include a bid to buy out the brothers’ shareholding.
Oxigen claims that cash jobs invoiced for emptying septic tanks, which should have been charged at €250, were allegedly only charged at one cent on the company invoices.
This, it is claimed, left cash unaccounted for in the company. Oxigen also alleges the brothers wrongly used company monies for personal expenses.
Those concerns were outlined when Oxigen secured temporary orders restraining disposal or destruction of the books and records of AWD pending further order.
Oxigen’s claims of wrongdoing are all denied by the brothers.
