The High Court has set aside an order under which it had last month appointed a provisional liquidator to Barford Meats Ltd, Carrickmacross, Co Monaghan.

The December 20th order was granted on the petition of Conagra Ltd, Carrickmacross which claimed that Barford owed it €144,156. It also alleged Barford was insolvent.

On December 20th, the court had appointed an insolvency practitioner, Mr Ken Fennell as provisional liquidator.

Yesterday, Mr Justice Kelly upheld an application by Barford for the discharge of the order appointing Mr Fennell.

The judge described Conagra's petition as "unjustified and inappropriate".

Mr Eugene McGinn, financial director of Barford, said in an affidavit the company had experienced trading difficulties.

Conagra had been a significant supplier to Barford for 18 years.

There had been recent negotiations with Liffey Meats (Cavan) Ltd and agreement was reached for the sale of certain stock, plant and machinery contracts.

Liffey Meats had also agreed to enter into a contract with Barford Ltd, of which Barford Meats is a subsidiary, which would have the effect of advancing €2 million to the Barford Group.

The purpose of the loan was to discharge all creditors of the two companies including redundancy monies and indebtedness to secured creditors.

Mr Justice Kelly held that the evidence placed before the court on December 20th last was insufficient to justify the making of an order for the appointment of a provisional liquidator.

Mr Kelly said it seemed to him there was no advantage to Conagra of the continued appointment of the provisional liquidator.