THE HIGH Court has approved a modified survival scheme for two companies in Galway businessman John Sweeney’s Black Shore group.
The companies – Sweeney Oil Retail Ltd and Sweeney Oil Service Stations Ltd – employ 37 people at service stations and associated retail units in Westport, Co Mayo, and at Clifden and Moycullen in Co Galway.
Anglo Irish Bank, the main secured creditor of Sweeney Oil Retail, had expressed concerns about the original survival proposals but yesterday withdrew its opposition to the scheme in light of the modified proposals. Under the scheme, Anglo will receive €1.85 million in full and final settlement of its €3.5 million debt.
A company in which Mr Sweeney’s son John is involved will provide a €1.5 million loan to Sweeney Oil Retail and a capital injection of some €500,000. The loan is repayable over 15 years, providing breathing space for the companies to allow them trade profitably, James Doherty, for the examiner said.
Mr Doherty said examiner Michael McAteer believed the companies had a reasonable prospect of survival under the schemes advanced. The modified schemes also addressed concerns expressed by Anglo about leases for the service stations, he added.
Lyndon MacCann SC, for Anglo, said the modifications addressed the bank’s complaints, including concerns relating to its interests being prejudiced by the original survival scheme and it was withdrawing its opposition.
The court heard both companies had always traded profitably but their exposure to other companies in the insolvent Black Shore group resulted in their financial difficulties.
Anglo, which is owed some €50 million by companies of Mr Sweeney, had previously installed a receiver over a number of assets in the Black Shore group after the holding firm failed in a bid for examinership last February.
After yesterday’s proceedings, Mr Sweeney, who was in court with members of his family, said he was very pleased with the outcome and was “looking forward to getting back to normal and getting on with running my business”.
