The IDA has instituted legal proceedings against the leisure company Q-Zar Manufacturing, which closed its premises in Tallaght two weeks ago. The proceedings are to recover the 35-year lease of the IDA-supported factory in Tallaght, where the company manufactured the Quaser laser game.
At the same time, the IDA has advised the company's creditors to institute legal proceedings to repossess their property in the factory.
The company, which was quoted on the Nadaq and Toronto stock exchanges, simply closed its doors in Dublin two weeks ago. Its parent has applied for Chapter 11 bankruptcy protection in the US where it is thought to owe several million dollars.
The IDA has only managed to contact a few of the 22-strong workforce but said it is now actively supporting their social welfare applications.
It has already secured the building but cannot take possession without authority from the courts.
The Irish company's creditors have not yet applied through the courts for liquidation or receivership. However, it is understood that the US company still employs several people and is actively looking for a "knight in shining armour".
Q-Zar had four Irish companies. As well as Q-Zar Manufacturing, which owned the Tallaght plant, the other companies are Six Grid, Golden Grid and Q-Zar Technology. None of the latter three companies have any major creditors , but they own the most valuable parts of the company in terms of patents and trademarks. However, one creditor got liberty from the Master of High Court to enter final judgment for $300,000 against all the companies and thus none can be disposed in the short term.
According to sources, any rescue attempt in the US would be likely to need the three Irish companies if it is to be successful. However, the fourth company, Q-Zar Manufacturing has substantial debts and may not prove attractive to a new investor.
Nevertheless, it is understood that the Irish company is owed "very substantial" amounts of money from the US company for shipping costs. As a result some of the Irish creditors may consider applying for proceedings and thus having a seat on the Chapter 11 table and the possibility of recouping some of their credit.
Sources added that the company may also owe sums to the Revenue Commissioners which may also apply for an examinership. A source for the Revenue yesterday refused to comment on whether it is to take action.
Mr Tom Butler, the company's chief executive, could not be contacted last night. However, the IDA said the company secretary has promised to set up a time and date for a meeting.
