A toy-making company employing 41 people in Ireland has exited interim examinership following an agreement between shareholders aimed at ensuring its survival.
Last month Ms Justice Caroline Costello appointed Neil Hughes interim examiner to Yvolve Sports Limited, which makes the popular Flicker scooter and other products for outdoors and sports.
The court was told an examiner was required for reasons including to protect an important contract the firm has with US retail giant Walmart.
A shareholder in the company, Cloverglade Ltd, sought the protection of the court due to the bankruptcy of one of its major customers, Toy R Us. This had resulted in cashflow problems, and a dispute between Yvolve's directors in Ireland and Taiwan-based directors.
Judge’s decision
Ms Justice Costello had been due to give her decision on whether to confirm Mr Hughes as examiner.
Lawyers for a Taiwanese shareholder in Yvolve and trade creditors had previously asked the judge not to confirm Mr Hughes as the examiner, arguing that the company didn’t need to be in examinership.
Aillil O'Reilly, for Sino Foreign Trading Company, now the majority shareholding in Yvolve, said it had funds to recapitalise the company and save the jobs.
Marcus Dowling , for several trade creditors, said they supported the Sino proposal and were prepared to support the company in the future if a recapitalisation takes place, but not if it goes into examinership.
Ross Gorman for Cloverglade, asked the court to confirm Mr Hughes as examiner, due to his client’s fear the company would go into liquidation if the examinership did not proceed.
His client did not accept the recapitalisation plan would succeed. The judge’s ruling was postponed after the court was told the parties had entered into discussions.
When the case returned before the court on Monday, the judge was told the petition to have the company placed into examinership was being withdrawn following an agreement between shareholders that would see the company recapitalised.
She adjourned the matter to later this week to see if issues, including the examiner’s fees to date, could be resolved.
