High Court winds up cash and carry

BAN ARD Cash and Carry Ltd was wound up by Ms Justice Laffoy in the High Court yesterday when she was told that the petitioning company together with 10 other companies were owed €1.9 million.

The judge said that it appeared Ban Ard Cash and Carry, with registered offices at Ballycurreen Industrial Estate, Airport Road, Cork, was a now a shell company.

She was told that Ban Ard in June last sold its assets, trading stock, staff and customer information into a new subsidiary company and the subsequent sale of the shares in that subsidiary company to Mangans Wholesale.

The petition was brought by C&C, the soft drinks suppliers, of Kylemore Park West, Dublin, who claim to be owed €323,516.

Their petition was supported by ten other companies including Coca Cola which claimed it was owed €451,960; Gallagher Ireland €280,744; John Player and Sons, €246,159 and Cadbury €316,065.

John O’Connor, C&C’s finance director, in an affidavit said C&C were very concerned at the purported transfer of Ban Ard assets to Mangans in the apparent absence of any provision having been made to discharge the significant outstanding debt due to C&C.

While it had been confirmed that Ban Ard had sold its fixed assets, trading stock and customer information to Mangans, it appeared the amount to be received by Ban Ard had yet to be finalised.

Mr O’Connor said that he was extremely concerned that Ban Ard seemed to have ceased trading and had purported to divest itself of a significant proportion of its assets apparently without regard to its liability to C&C.

On June 16 last C&C received a letter from Mangan Bros Ltd indicating that Ban Ard had agreed to transfer its business to new a Mangans subsidiary company as and from June 17.

The letter stated that Mangans were willing to guarantee payment of all stock delivered to Ban Ard since June 9 and invited creditors to submit details of retention of title claims in respect of stock on the company’s premises as at June 4.

On June 23 C&C received a letter from Mangans confirming that as and from Monday, June 21, Ban Ard’s business was 100% owned and operated by Mangans.

Mangans indicated that all goods on Ban Ard premises on June 9 held under retention of title would be paid for in full.

In addition, Mangans confirmed that payment for all goods supplied from June 9 would be underwritten by Mangans and paid for in full. In relation to amounts due to creditors as at June 8 not covered by retention of title, Mangans indicated such amounts remained a liability of Ban Ard.

The Ban Ard premises at Ballycurreen had been disposed of in December 2003 and the proceeds remitted to Ban Ard at that time.

Mr O’Connor said it was evident from a statement in a letter from Ban Ard on June 24 to the effect that “a shortfall will exist in terms of supplier settlement” that the company was clearly unable to pay its debts and was insolvent. The letter had indicated its intention to “determine whether settlements could be reached by way of a scheme of arrangement with suppliers and creditors....”

Declan O’Sullivan, managing director of Ban Ard, in a letter to C&C dated June 24, said that the primary object during all negotiations was job security for staff that could potentially be retained and the maximisation of settlements that could be made to creditors and suppliers “in whatever amount could be achieved.”

Ms Justice Laffoy appointed accountant Kieran Wallace as liquidator.