THE HIGH Court will decide tomorrow whether to approve a rescue plan for a group of companies operating a number of pharmacies employing 46 people in Galway.
The scheme, if approved, would allow Michael McLoughlin Pharmacy Ltd and Sundrive Pharmacy Ltd to continue to trade. It was submitted to the High Court yesterday by George Maloney, of Baker Tilly Ryan Glennon, who was appointed examiner to the firms in October.
The Revenue Commissioners are opposed to the scheme, arguing its interests are prejudiced.
The Revenue has concerns over money taken out of the company by its directors on which tax is due, the court was told. The group directors are Michael and Anne McLoughlin, Devon Park, Salthill, Galway.
Lawyers for the examiner and United Drug (Wholesale Ltd), who will invest in the companies if the scheme is approved, argued that all parties concerned, including the Revenue, would do better if the companies were allowed to continue to trade rather than be placed in liquidation.
Mr Justice Frank Clarke will decide whether to approve the scheme.
Under its terms, United Drug, creditors of the firm, is to make a substantial investment in the company and to provide approximately €1.2 million to pay off the firm’s creditors.
United Drug will effectively take over the businesses and the former management would have no role in the companies, it was stated.
Bernard Dunleavy, for the examiner, said all classes of creditors except the Revenue favoured the scheme. Bank of Scotland, owed €7 million, was also in favour subject to a technical modification.
The two firms were granted the protection of the court last October, on the application of United Drug, after it was stated they were insolvent and unable to pay their debts as they fell due.