Several rivals offered to buy Barna Waste about 24 hours before it sought High Court protection from its creditors yesterday.
The court yesterday appointed Neil Hughes of Hughes Blake as interim examiner to Galway-based Bruscar Bhearna Teoranta, trading as Barna Waste and Joe McLoughlin Waste Disposal, following an application from its directors .
The move means that the company has court protection from its creditors, including Bank of Scotland Lloyds, which is owed €9 million, and, if the examiner's appointment is confirmed at another hearing next week, up to 100 days to put together a rescue plan for the business, which is unable to pay its debts.
Up to five buyers
Sources confirmed late yesterday that on Wednesday, up to five potential buyers submitted formal bids for the group to adviser Grant Thornton, which had been overseeing a sale of the troubled business.
Wednesday was the deadline for final bids for the company, and it emerged last week that at least three companies were likely to offer to buy Barna, which was put up for sale several weeks ago.
The directors, Seán and Annette Curran, did not comment on the bids. A statement issued on their behalf said that the bank was responsible for the sale process .
However, the directors have moved for the appointment of an examiner, as they believe this to be in the best interest of all stakeholders – its local suppliers, its 270 long-standing loyal staff and its creditors, including Bank of Scotland Lloyds.
Group assets
Ross Gorman, for the group, told the court yesterday that Bank of Scotland had appointed Grant Thornton to sell the assets, and had told the Currans that the group's assets would have to be transferred to a new company and the firms would have to be liquidated.
Mr Gorman added that the couple were not involved in the sale process and potential buyers had been told not to contact them. He also maintained that trade creditors were not informed of the bank’s plan to sell the assets.
According to reports in recent weeks, Grant Thornton favoured a sale of the business rather than the assets.
Barna, which has over 30,000 customers in the west of Ireland, had sales of about €26 million last year.
