The liquidator of MediaLab Europe said yesterday he expects there will be no outstanding deficit from the winding up of the international research institute.
He also confirmed that the intellectual property and patents generated from the State's partnership with the Massachusetts Institute of Technology (MIT) have been declared as worthless.
David Hughes, from the accountancy firm Ernst & Young, said that all unsecured creditors, which include electricity and heating suppliers, should be paid following the current liquidation.
A declaration of insolvency drawn up by the board of MediaLab Europe shows that the estimated cost of the liquidation is €3.12 million. Unsecured creditors are owed some €23,920.
The declaration also shows that the board expects there should be a surplus of €325,644 following the payment of the institute's outstanding debts. Under the articles of association of MediaLab Europe, any surplus generated through the liquidation process will be made payable to charitable causes.
MediaLab Europe had cash in the bank worth €3.01 million at the time of the liquidation and was owed a further €407,607.
Interestingly, the declaration incorrectly shows the value of the patents and trade marks owned by MediaLab Europe as €20,932. However, Mr Hughes confirmed that this was a mistake on the declaration and their actual value was negligible. In fact, the value of furnishings in the MediaLab was worth €20,932.
Mr Hughes said the liquidator would have to establish whether it was worthwhile to continue to invest in the patents filed by MediaLab Europe, some of which are still going through the application process. It is thought up to 12 patents were filed in its lifetime.
The MediaLab Europe board of directors ordered the voluntary wind up of the research institute in January, following the failure of talks between the Government and MIT over a financial rescue package. MediaLab Europe was originally expected to be self-financing by attracting enough corporate funding to pay its annual running costs.
However, despite personal donations from entrepreneurs such as Denis O'Brien and funding from companies such as the telecoms firm Orange and the BBC, the proposed funding model never brought in enough cash. The Public Accounts Committee will examine the collapse of MediaLab later this month. The project, which was initially sponsored by the Taoiseach, Bertie Ahern, during the internet boom, is estimated to have cost taxpayers at least €35.5 million.
The Irish Times recently published information from a series of reports obtained using the Freedom of Information Act which outlined chronic mismanagement of the flagship project.
