Superquinn directors may be cross-examined today

A NUMBER of Superquinn directors may be cross-examined today in the High Court, as the legal dispute over the future of the supermarket chain, which entered receivership last week, continues.

The High Court will today be asked to decide whether an application to appoint an examiner to Superquinn, which was made last week after joint receivers were appointed to the company, was validly made.

Kieran Ryan, Bernard Doyle, David Courtney, Terry Sweeney and Simon Cantrell have filed affidavits with the court and may be cross-examined. In addition, former Superquinn chief executive Andrew Street, who resigned from the company last week, filed an affidavit with the court.

Today the court will decide whether the petition was brought within the three-day period as stipulated under the Companies Act and whether the application for court protection constituted “exceptional circumstances”.

Yesterday Justice Mary Finlay Geoghegan also ruled that two additional issues will be considered at today’s hearing – whether the company validly resolved to present the petition for examinership and whether the directors validly resolved to present a petition in their capacity as directors.

While some of the directors have asserted that the board of directors at Superquinn agreed on Monday of last week to present the petition seeking the appointment of an examiner to the trading side of the company, this has been disputed by one of the directors, Mr Cantrell. Doug Smith of Eugene F Collins solicitors is expected to give evidence in support of Mr Cantrell’s assertion today.

The outcome of the preliminary hearing today will determine whether a full hearing of the examinership petition will proceed on Thursday.

Yesterday the court was told by Lyndon Mac Cann SC, for the company and some of its directors, that affidavits had been supplied to the joint receivers, Kieran Wallace and Eamonn Richardson of KPMG, appointed to the supermarket chain last week. His clients would be available to be cross-examined today, counsel said.

The court also heard that Mr Cantrell, who was separately represented in court, will also be available for cross-examination.

A representative for Musgrave Group, the proposed buyer for Superquinn, said the company intended to make submissions to the court ahead of Thursday’s hearing. If the court concludes the petition can be heard, the hearing will proceed on Thursday, when it will be opposed by the banks and Musgrave Group.