A SCHEME aimed at procuring the survival of two related property companies was approved at the Commercial Court yesterday.
Mr Justice Peter Kelly also noted the examiner of the companies had found no evidence to support claims by two substantial creditors that the companies’ cash flow was funded with money obtained on the basis of allegedly false certificates relating to debts of one of the companies.
The judge had last week directed the examiner of GL Property Investments Ltd, Abbeyleix Road, Portlaoise, and a related company, Portlaoise Construction Company Ltd, to investigate those allegations.
Examiner Kieran Wallace reported to the court yesterday his investigation had disclosed no evidence to suggest the certification procedure was falsified.
Both companies were involved in developing the Parkside shopping centre in Portlaoise, Co Laois, and other developments and were placed under court protection late last November after they were said to be insolvent. The court previously heard most apartments at the Parkside complex remain unoccupied.
Yesterday, Mr Justice Kelly heard most creditors of the companies had approved the survival schemes proposed by the examiner, which provide for payments from 8 to 20 per cent for various classes of creditors and zero payments for directors loan creditors.
If the companies were wound up, that would leave an €11.9 million deficit in the case of PCC and €16.4 million for GL, he also noted.
He further noted two creditors of PCC, Plum Heat Ltd and John Fletcher Ltd, who between them are owed some €1 million, had expressed concerns about alleged false certificates but the examiner’s investigation had yielded no evidence to support such claims.
The judge said the stark choice was between approving the schemes or having a receiver appointed.
Given the overall situation, he would approve the schemes.