The examiner to Schmidt Industries International Ltd believes the company can survive as a going concern, the High Court was told yesterday. The company employs 55 people at its plant at Ballyfermot, Dublin.
An interim report from the court-appointed examiner, accountant Mr Michael Butler, was filed in court yesterday. The report is to be made available to the company and to other parties. Mr Butler was appointed interim examiner to Schmidt, which manufactures dust control mats at its plant at Cherry Orchard Industrial Estate, on November 20th last and his appointment was confirmed on December 7th.
Applying for leave to file the report, Mr Mark Sanfey, for the examiner, said the company's two premises had been advertised for sale and were valued at £4.1 million (#5.2 million).
It was anticipated tenders would be received by the first week in February and decisions would have to be made then on the examiner's proposals, counsel said.
Even with a provision of more than half a million pounds for Capital Gains Tax, there would be substantial equity arising from the sale, Mr Sanfey added. It was hoped all unsecured creditors could be paid off in full, perhaps through a scheme of arrangement.
Mr Sanfey said the examiner had noted the company had received grants totalling £585,500 from An Bord Trachtala and Forbairt but these grants were repayable only if the company went into liquidation.
The examiner was happy the company could survive as a going concern and believed continuation was more advantageous than liquidation, counsel said.
Mr Sanfey said he had been instructed to raise the examiner's concern about the extent of insurance cover for the premises - which amounted to just £1.8 million - in light of the £4.1 million valuation of the premises. He understood the company directors were doing what they could in relation to the matter.
Mr Michael O'Donnell, for the company, said there appeared to be an administrative difficulty regarding insurance but he had no instructions on the extent of insurance in place. No argument was being advanced that the examinership should end because of this, he said. Granting leave to file the examiner's interim report, Mr Justice McCracken said it was clear, given the valuation of the company's assets, that there was a prospect of survival.
(# signifies the euro)