Usit liquidator gets EUR744,305 for two-year stint

Liquidator's fees of €744,305 were charged by Mr Ray Jackson of KPMG during a two-year period as liquidator to Usit Ltd, according to a document filed recently in the Companies Registration Office.

The liquidator's statement of account for the period January 2002 to January 2004 also shows legal fees of €483,567. Other disbursements were: "chief clerk, court duty", €89,000; wages, €124,990; and shredding, €3,643. The total disbursements were €1.65 million.

Realisations included: €1.76 million from debtors; €686,870 from Usit World.com Ltd, under a scheme of arrangement; and €56,799 in deposit interest from National Irish Bank (NIB). Total realisations were €2.66 million.

The balance between realisations and disbursements was a surplus of €1 million.

The document also states the amount of the estimated assets and liabilities at the date of commencement of the winding-up. Assets were €4 million. Liabilities to unsecured creditors were €99 million.

Usit Ltd was the treasury operation of the Usit group. Although its place of business was in the Republic, it was a Northern Ireland-registered company.

Mr Jackson was appointed liquidator in January 2002. The High Court was told that the company was "totally insolvent". NIB, which described itself as an unwilling creditor for €3.38 million to the company, sought the winding-up.

In a report to the court in 2002, Mr Jackson said the failure of the company was due to a number of factors. The events of September 11th, 2001, had a major effect on cash flow. Further pressures were put on the company finances by its funding a 60 per cent purchase of a US company, Council Travel. Usit Ltd had also drawn cheques on related company bank accounts for which there were no funds, he said.

The Usit group collapsed in 2002. New investors have since bought Usit Ireland Ltd and that company is trading successfully.