THE HIGH Court has appointed an interim examiner to the operator of an Eddie Rockets restaurant franchise that employs 25.
Curra Properties Ltd, which operates Eddie Rockets at the Stillorgan Shopping Centre in Dublin, has run into financial problems because it is unable to service a historic debt of €1 million owed to Revenue.
That debt was caused by an ex-employee who embezzled substantial funds from Curra, the court was told yesterday.
Mr Justice John Cooke appointed insolvency practitioner Gary Lennon as examiner to the firm, giving it up to 100 days protection from its creditors. It has operated as a landmark restaurant in the area since 1994.
The court was informed that while Curra, with a registered address at Stillorgan Shopping Centre, was insolvent and unable to pay its debts, an independent accountant’s report suggested the company had a reasonable prospect of survival as a going concern if certain steps were carried out.
Those steps include obtaining court approval for a scheme of arrangement agreed between the company and its creditors, and securing fresh investment in the company.
Ross Gorman, for Curra, said it was in the best interests of all concerned that an examiner be appointed to the firm. Counsel said there would be a deficit of €2.1 million if the firm was wound up, whereas the deficit would be much lower should the business survive as a going concern.
Despite the firm’s difficulties, counsel said there was every prospect that it would survive as its business was sound and was capable of generating a profit.
Counsel added the franchiser Eddie Rockets was supporting Curra’s application for examinership.
Counsel said his client was currently crippled mainly due to the “historic debt” caused by the activities of a former employee.
He said the ex-employee in question, who falsely claimed to be qualified to audit the firm’s books and records, “took money due to Revenue and used it for their own purposes”.
The same ex-employee also “significantly underestimated” the firm’s liability to Revenue.
Counsel said this activity took place over a number of years until 2008 when the directors of the company discovered what was going on.
To deal with its debts, Curra entered into an arrangement to make payments to Revenue, Mr Gorman said. It now found itself in a position where it was falling behind in those payments.
He added the company also suffered cash flow difficulties after it refurbished and expanded its business.
Mr Justice Cooke made the matter returnable to a date later next month.