A PROVISIONAL liquidator was appointed yesterday by the High Court to the Advanced Technology College in Merrion Square, Dublin, following the withdrawal of the examiner.
Mr Justice Shanley appointed Mr Patrick McSwiney, chartered accountant, to Advanced Technology College Ltd as provisional liquidator.
Mr Brian Farren, counsel for the company, instructed by Mr Michael Quinn for William Fry, solicitors, said the petition to wind up the company had been lodged earlier in the day and a return date set for June 9th next. However, he was applying for an earlier date for the hearing of the petition and for the appointment of a provisional liquidator.
The judge said he would bring forward the date for the petition hearing to next Monday. The petition should he heard as expeditiously as possible and it would allow the students, who unfortunately had been left in an uncertain frame of mind, to at least have some certainty returned to their lives.
In an affidavit, Mr John Thewlis, Gibbstown, Navan, Co Meath, said he was a director of the company. It had assets comprising furniture, equipment and computers valued in the region of £200,000.
On March 21st Mr Rory O'Ferrall was appointed examiner on the petition of the students. On April 14th Mr O'Ferrall presented his report and said he was of the opinion the company was capable of survival as a going concern.
However, on May 1st the directors had a meeting with Mr O'Ferrall at which he informed them that as none of the various potential investors was now willing to make the investment necessary to facilitate the drawing up of the survival plan, he had formed the view that the company was no longer capable of survival.
Mr Thewlis said the examiner made an application to have the examinership lifted. In an affidavit Mr O'Ferrall stated that one of the parties with which he had been in discussions might be interested in finishing some or all of the courses which the company began.
Mr Thewlis said that if this was the case, it would clearly benefit the students. He therefore agreed with the examiner that a provisional liquidator be appointed as quickly as possible.
Before the appointment of the examiner, the directors had announced their intention to wind up the company. Following that announcement, the premises at Merrion Square were occupied by a number of persons and certain assets were removed.
When the examiner was appointed the occupation ceased and the assets had since been preserved in an orderly fashion.
Mr Thewlis said he was concerned that once the examiner was discharged and a petition for a winding-up order was pending, a situation similar to that which existed before the examiner's appointment could arise again. This could be avoided by the appointment of a provisional liquidator.
The company had a capital deficit of approximately £157,000. The Revenue Commissioners were owed about £108,000.
Mr Farren said there was an additional problem of insurance as, once the protection was lifted, the insurance on the property lapsed. If a provisional liquidator was appointed, he could arrange the insurance.
Mr Justice Shanley said it seemed to him that a provisional liquidator should be appointed to secure the assets and also to see if courses could continue. He ordered that Mr McSwiney take possession of the company's interests, and all fixtures, fittings and moveable property. The provisional liquidator should also assess the cost of insurance.
Mr Justice Shanley made the order that the protection of the court cease from yesterday's date.