Superwood, which manufactured products from waste plastics, was established in 1981 by its chairman, Mr Richard Bunyan, a production engineer, and Mr Desmond Finnegan, who has a background in marketing.

The company started operations from premises at Sandyford Industrial Estate, Co Dublin, and also purchased a site at Corke Abbey, Bray, Co Wicklow.

In April 1986 a fire destroyed the Sandyford premises and insurance payments were made. The company started operations at Bray and in October 1987, the Bray premises was destroyed by fire. Four insurance companies disputed the Superwood claim arising from the Bray fire.

In 1991 the High Court ruled against the company in its claim against the insurance companies. Superwood had been seeking £8 million in damages, a figure comprised of £2 million compensation plus £6 million consequential losses. The insurance companies argued that the claim was so exaggerated as to lead to an inference that it was fraudulent.

The High Court found there had been a fraud by the plastics firm in its presentation of its claim for losses suffered. Mr Justice O'Hanlon said the company's projected sales and profits were unrealistic and unachievable. Costs awarded against the company for the 115-day case were estimated at the time to be in the region of £3 million.

Following the High Court decision, a receiver was appointed to the company and 38 workers at the Bray plant were laid off. Superwood appealed the High Court decision to the Supreme Court and in 1995 the case was referred back to the High Court. The second High Court hearing began in February of last year.