Courts

FAI contract termination heralded ‘disastrous decline’ in JACC’s fortunes, court hears

JACC’s majority shareholder apologises for being unrepresented when creditor applied for the firm’s wind-up

The FAI's decision to end the contract with JACC led to a 'disastrous decline' in the business, the court heard. Photograph: ©INPHO/Morgan Treacy

Fri Nov 4 2022 - 13:57

A director of a company that supplied football kits to the FAI has said he was “so consumed by the storm of events” leading to moves to wind up the company that he did not make the necessary arrangements to appear in the High Court last week.

Jonathan Courtenay, a majority shareholder of JACC Sports Distributors Ireland, apologised to the court for having not been represented last week when JACC’s largest creditor, Deal Partners Logistics, applied to have it wound-up.

JACC owes some €13 million, including €7 million to Deal Partners, €3.8 million to Ulster Bank and €2.5 million to Revenue.

On Friday, Mr Justice Brian O’Moore confirmed the appointment of Aengus Burns of Grant Thornton as liquidator to JACC.

READ MORE

The judge noted a report from Mr Burns since he was appointed as provisional liquidator and an affidavit from Mr Courtenay, which Mr Courtenay made on his own behalf and on behalf of his fellow director and shareholder Patrick Peyton.

In the affidavit, Mr Courtenay said the company did not oppose the winding up but did not agree with everything stated on behalf of Deal Partners in its application to the court.

He said he will communicate “in due course” his views to the liquidator in relation to the management of the company and the concerns expressed by Deal Partners about the way it was run.

The judge last week expressed surprise that there had been no appearance on behalf of the directors for the hearing of the application by Deal Partners to appoint a provisional liquidator.

Explaining why this had happened, Mr Courtenay said the company’s most valuable contract was with the FAI and it was due to run until 2026.

The FAI’s notification of termination of the sponsorship agreement with JACC “heralded a disastrous decline in the company’s fortunes”. The company immediately sought advice about the legality of that decision, he said.

He had been in constant contact with company creditors and customers, and it was a “turbulent, chaotic and extraordinarily difficult time” for the directors and the company. The company did not instruct solicitors in time to attend court for the Deal Partners petition, he said.

He accepted the company was insolvent and unable to pay its debts as they fall due. He had already met the liquidator and co-operated with him to ensure an orderly winding up of the business.

In making the winding up order, the judge also ordered the directors to supply a statement of affairs to the liquidator within 28 days.

LATEST STORIES