The directors of the Co Westmeath based Christmas tree company, European Forestry Growers, have proposed that the company be put into voluntary liquidation. A creditors meeting has been called for May 19th next to appoint a liquidator. Its directors, Mr Leonard Mohan and Mr Conor Mohan, have issued an official notice this week, stating that they will also be seeking to establish a committee of inspection. This committee will consist of creditors who are owed money by the company.

The directors can, under company law appoint a liquidator of their choice to the company, which has been trading since 1990. This can be challenged by its creditors, who can in turn seek to have their own liquidator appointed.

European Forestry Growers has a registered address at the Summerhill Industrial Estate in Athlone, but its offices are no longer attended. The current financial position of the company is not known. It last filed annual returns at the Companies Registration Office in 1994. According to this last available information, it reported losses of £131,951 at the end of April that year. At that time it had fixed assets of £27,203 and long-term finance liabilities of £171,545.

Last month, a Co Mayo farmer, who had a contract with the company to plant Christmas trees, secured a court judgement against European Forestry Growers for £2,760. He was also awarded costs of £295. In 1996, the Belfast Telegraph, also was awarded a judgement for £465.71 and costs of £42 against the company.

When European Forestry Growers initially began trading in 1990, it entered into contracts with hundreds of farmers and land-owners throughout the Republic to plant its Christmas trees. The company undertook to sell the trees to farmers usually for around 50p each, and to supply them with fertiliser and weed killer, to see the trees to maturity.

After three to five years, depending on the tree species, the company had contracted to buy the mature trees, at a fixed rate of £3. The intention was that they would be mainly exported to Britain and Germany. A number of growers have contacted The Irish Times, with complaints about the company and expressing difficulties in securing payment for their trees. They also stated that they were having difficulties making contact with the directors. Some have claimed to be owed sums of up to £30,000.

The Department of Marine and Natural Resources has confirmed to the Irish Times that it has received complaints from disgruntled growers, who had contracts with European Forestry Growers. However the department has stated that the company's activities do not fall within its jurisdiction.

Meanwhile, the Companies Registration Office has stated that it will be issuing a strike-off notice against European Forestry Growers for its failure to file annual accounts.