AN INTERIM examiner has been appointed by the High Court to 11 companies in the McSweeney pharmacy group employing 95 people and with debts of more than €17 million. The group’s companies in Northern Ireland are not affected by the examinership and are trading profitably, the court heard.
Mr Justice Frank Clarke yesterday granted the companies application to appoint Denis McDonald of PricewaterhouseCoopers as interim examiner and returned the petition to November 4th.
Rossa Fanning, for the companies, said the matter was urgent as United Drug, possibly the companies’ largest unsecured creditor, attended at some of the pharmacies yesterday morning and moved to repossess stock despite having been told on Wednesday of the intention to present the petition for examinership.
The petition had been presented in the High Court central office late yesterday afternoon and the Companies Act provided, when a petition is presented, a company is under court protection, counsel said. He was seeking orders to restrain United Drug’s actions.
Mr Justice Clarke said he would grant the injunctions as the law was clear and “not a matter for debate”. Any attendance at the companies’ premises or seizure of stock was unlawful and, if it did not cease immediately, United Drug could be in contempt of court, he warned. Any goods seized must also be returned, he directed, and returned the injunctions to today.
The examinership petition is by McSweeney Dispensers, trading as Tohers Pharmacy, and 10 related companies in the group.
The group is not seeking examinership for other loss-making companies within it and plans to sell those or place them in liquidation.
An independent accountant had expressed the view 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, the judge was told.
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.
