Scheme of arrangement approved for Ardmore Technologies

THE High Court has approved a scheme of arrangement for Ardmore Technologies, which designs, installs and maintains local and wide area phone networks and employs 15 people.

The company has been under court protection since September last, but that examinership will be lifted on January 31 next when the scheme of arrangement will come into effect, directed Mr Justice Peter Kelly yesterday.

Mr Neil Hughes was appointed examiner to the company, which was incorporated in 1996 and has registered offices at Dungarvan Business Park, Dungarvan, Co Waterford, on the unanimous petition of the directors after the company encountered cash flow problems last year. The judge was told the company hoped to get into a break-even situation and it was believed to have a good possibility of survival provided a number of conditions are met, including the securing of investment.

Yesterday, the judge noted, under the proposed scheme of arrangement, Bank of Scotland Ireland would, over a period of time, be repaid 100% of its debt while the Revenue was to receive about 16%. He noted the Revenue had made a “technically correct” objection to this proposal on grounds it has a preferential creditor ranking ahead of the bank. However, the examiner had sought the views of the bank on modifying the scheme of arrangement, the success of which was dependent on the bank’s advancing monies and the bank had indicated it was opposed to modification.

In those circumstances, there was “no practical reality” to the Revenue’s application, said the judge. If the court wound up the company, the Revenue would have a “paper claim” for 100% of its debt but in reality would get nothing. However, if the proposed scheme was approved, it would get 16%.

Noting the Revenue was not seeking a winding up order the judge approved the scheme.