The High Court has appointed provisional liquidators to a Co Meath-based company with 45 employees that makes and installs automatic gate systems.
The appointment was made in respect of Killeen Engineering Fabrication Limited, which the court heard had been trading successfully for some time, but became insolvent after demand for its business “fell off a cliff” in recent months.
At the High Court on Thursday Mr Justice Mark Sanfey said he was satisfied, given the firm’s insolvency, to appoint Nicholas O’Dwyer and Colm Dolan of Grant Thornton as joint provisional liquidators of the firm, with a registered address at Main Street Enfield, Co Meath.
Seeking their appointment, Ross Gorman BL, instructed by Amoss Solicitors, said the company had been doing well, sales volumes had increased and it had expanded its workforce to service that demand.
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However, sales “decreased significantly” in the third quarter of 2023, which had a serious impact on the company’s cash flow leaving it with less than €20,000 in cash, counsel said.
Counsel said that the company owes some €650,000, which had been paid to it by way of deposits for its products, to its existing customers.
The company had tried but was unable to raise additional finance to resolve its difficulties.
Given the circumstances, counsel said that the business sought the appointment of provisional liquidators in the best interests of the creditors and to ensure an orderly winding up.
Counsel said that the company had already “closed it doors”.
However, it was hoped that the provisional liquidators could realise a considerable portion of the firm’s stock and could engage some of the employees on a short-term basis to complete the profitable orders.
It was further hoped, counsel added, that the liquidators might also be able to sell part of the company’s order book and goodwill to a third party.
The judge granted the provisional liquidators various powers including those allowing them to take control of the firm’s assets and to continue the company’s trade for the benefit of the liquidation.
It would be up to the provisional liquidators to look into the amount of money paid as deposits to the company, the judge added.
The matter will return before the court in the coming weeks.
