Sealion Services, a Co Leitrim boat building company with debts of £3 million (€3.81 million), was wound up by the High Court yesterday. The Revenue Commissioners said it had "very serious concerns" about the company, one of whose directors, Mr Shane Matthews, had "gone missing".

Ms Aoife Goodman, for the Revenue, said the Garda Fraud Squad was involved in investigating the disappearance of substantial assets of the company, especially cruise boats which could not be found. She added that Sealion had incurred debts of more than £2 million in the past 18 months from mutual trading between a number of creditor companies.

Sealion had traded as Rosebank Marine and was based at Main Street, Carrick-on-Shannon, Co Leitrim. Anglo-Irish Bank appointed Mr Brendan Foster as receiver to the company last October.

On the application yesterday of Mr Gerry Ryan, for an auctioneer and creditor of Sealion, Mr David Tracey, Mr Justice O'Neill made an order winding up Sealion, and appointed Mr Fergus Ahern as official liquidator. A number of creditors, with debts amounting to £1.9 million, had proposed the appointment of Mr Julian Caplin as liquidator but the Revenue, supported by several creditors with total debts of more than £400,000, proposed Mr Ahern.

The judge also ordered the directors of the company - Mr Shane Matthews, of Carrick-on-Shannon, and Mr Frank Farrell, of Southland, Athlone, Co Westmeath - to compile a statement of affairs by January 15th next and he returned the matter to the High Court examiner's list on January 29th.

He said it appeared there was a substantial degree of connection between the company and some creditors. There were some common directors.

Ms Goodman said the Revenue was owed £40,000. She said Mr Ahern was based in Boyle, Co Roscommon, and would have local knowledge which would be of assistance in the liquidation. She stressed she was not casting any aspersions on Mr Caplin's abilities.

In an affidavit, Mr Liam Gallagher, a Revenue official, said Sealion's affairs have been the subject of newspaper comment suggesting it may have been involved in fraudulent trading. In light of such reports and the company's failure to make tax returns and to pay tax liabilities as they fell due, he formed the opinion the company was likely to be insolvent and unable to pay its debts. The Revenue was supporting the petition of Mr Tracey.

Moving the petition, Mr Ryan said Sealion was clearly insolvent and its affairs had attracted considerable media coverage. His client was proposing the appointment of Mr Caplin as liquidator. A total of 11 creditors were proposing Mr Caplin while six supported the Revenue's proposal that Mr Ahern be appointed.

Mr Mark Sanfey said he was appearing for seven creditors all of whom supported Mr Caplin's appointment. He said Mr Caplin was very experienced and there was no issue regarding his suitability for the task.

Mr Sanfey said one creditor, Leitrim Cruiser Hire, had eight boats missing valued at about £480,000. Another creditor, Irish Cruiser Hire, had 14 cruisers missing. It was owed about £653,000. The missing boats were owned by ICH and were given to Sealion to be let out.

Ms Goodman said there were a number of related creditors and the creditors supporting Mr Caplin and represented by Mr Sanfey essentially amounted to one creditor. She said Leitrim Cruiser Hire was owed £552,000. A director of that company and other creditor companies was Mr Michael Butler who was owed £500,000 personally.

Counsel said another director of LCH was Mr Frank Farrell, who was also a director of Sealion.