The liquidator of failed advertising company Doherty has warned he may issue legal proceedings following an investigation into the company's collapse.
Mr Jim Stafford, of Friel Stafford chartered accountants, has told creditors they might benefit from such a legal action.
"I am investigating certain issues regarding the company affairs.
"It is possible that I may issue legal proceedings in respect of these issues, and that realisations from such legal proceedings may produce a dividend for unsecured creditors.
"However, for legal reasons, I am unable to disclose to creditors what issues I am investigating and what I estimate their outcome will be," said Mr Stafford.
Doherty collapsed last year and Mr Stafford said there was now a shortfall of at least €3.7 million. Ulster Bank is the main creditor and is owed about €3.4 million.
The firm does have total assets of €3.2 million, but has total creditors of €6.9 million.
Mr Stafford said he had identified the following individuals of the company as being directors of the company within 12 months of the company's insolvency: Mr Mark Beggs; Mr Anthony Martin; chairman Mr Paschal Taggart; Mr Shay Moran; and Mr Liam Gaskin.
Contacted by The Irish Times, Mr Beggs said he knew nothing about any legal investigations. He said the company was now in the hands of Mr Stafford, not the former directors. He was not aware of the progress in relation to paying creditors.
Apart from Ulster Bank other creditors include: the Revenue Commissioners (€628,000); employee claims (€137,546); trade creditors (€2.4 million). Several media organisations, including RTÉ, the Irish Independent and The Irish Times, are also among the creditors.
Mr Stafford was appointed liquidator of the company on September 24th, 2003, by order of the High Court on foot of a winding up petition issued by Independent News & Media.
Up to its collapse, Doherty Advertising was one of the largest advertising companies in the State, placing €7.9 million in ads in 2002. The company ceased trading last August and has since been placed in liquidation. It had 36 staff.
In 2001, Doherty Advertising was sold to Mr Beggs, Mr Martin and Mr Gaskin, for €5.9 million.
Mr Beggs previously said the main causes of the firm's collapse were the payments that had to be made to the former owners; the downturn in the economy; and the collapse of the Dublin Daily newspaper, for which Doherty held the advertising account.
