High Court makes order for winding-up of finance company

THE High Court has made an order for the winding up of financial loans company FAI Finance Corporation Ltd, which had losses of about £36 million (€48m) up to December last and negative net assets of £32m (€43m).

On the application of Fexco, 51% majority shareholder in FAI Finance, Ms Justice Mary Laffoy granted the winding up orders and appointed William O’Riordan of Pricewaterhouse Coopers of Spencer Dock, Dublin, and Simon Granger of FTI Consulting, Holborn Gates, Southhampton Buildings, London, as joint liquidators of the company.

FAI Finance Corporation has registered offices at Swords Business Campus, Balheary, Swords, Co Dublin, and was engaged in providing loans, including right-to-buy loans, a scheme operated by the British government under which local authority tenants in Britain could buy their rented homes at a discount. It also provided industrial disease loans, essentially loans to assist workers in Britain to make claims under industrial disease legislation there.

It had entered into an arrangement with Barclays Bank for finance facilities and had drawn down about £30 million (€40m) under that. Barclays has a first fixed charge over the assets and undertaking of the company and its loan was repayable in October last.

Seeking the winding up orders yesterday, Lyndon MacCann SC, for Fexco, said the Barclays loan became repayable in full on October 12, 2007, in the event of a demand and FAI Finance was not in a position to repay either Barclays or Fexco. Fexco had provided funding to the company of £7,718,518 and €1,691,700.

The petition was presented with the support of Barclays and FAI Finance as the company was unable to pay its debts.

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