ALLIED IRISH Banks is to oppose a petition for examinership brought by 11 companies in the McSweeney pharmacy group which employ 95 people across the State, the High Court has been told. Firms in Northern Ireland are not affected by the petition, the court has previously heard.
Rossa Fanning, for McSweeney Assets Group Holdings Ltd, told Mr Justice Frank Clarke yesterday that AIB was a secured creditor of the companies and had indicated it would oppose the petition to be heard next week.
James Doherty, for AIB, said while there was an underlying business in the companies, the bank believed it would be better served by receivership.
Mr Doherty said solicitors for his client received “a blunt refusal” when it sought a copy of the companies’ business plan and restructured balance sheet for 2010.
While there was a plan for business and financial projections, there was not a unitary document in the sense that Mr Doherty had sought, Mr Fanning responded. Mr Justice Clarke directed the companies to provide AIB with detailed financial figures which are either already available or which may be exhibited.
Examinership is being sought for 11 companies in the group with debts of more than €17 million.
The companies secured court protection last week. Yesterday, a representative for United Drug, a substantial creditor, also said it wanted documents from the company so it could form a view whether there was a future business plan.
Counsel for the Revenue Commissioners also said it was reserving its position until they saw material in the case.
Mr Justice Clarke directed that all affidavits be given to both the Revenue Commissioners and United Drug.
Last week, the court was told the group was not seeking examinership for other loss-making companies as it planned to sell them or place them in liquidation.
An independent accountant had expressed the view that the 11 petitioning companies had a reasonable prospect of survival provided certain conditions were met, including securing investment and implementation of an existing cost reduction plan.
Mr Fanning said Geert Hof, the group’s founder and major shareholder, has resources and was in a position to provide €1,040,000 during the period of examinership, so the companies could stock up for the Christmas period.