Stephen Pearce extends its protection

A HIGH Court judge has extended court protection for two companies producing and selling pottery under the Stephen Pearce brand after being told two parties expressed interest in investing in them.

Mr Justice Peter Kelly yesterday granted applications by Gary McCarthy, for examiner Kieran Wallace, to extend the protection period to February 20 next to allow more time to formulate a scheme of arrangement for the companies. He also gave Mr Wallace until February 12 to present a scheme of arrangement to the court.

Mr McCarthy said Mr Wallace has identified two potential investors, one of whom had completed a due diligence and an offer was expected in days. Mr Wallace expected to then able to formulate a scheme of arrangement.

Making the orders sought, the judge said he was satisfied it was desirable court protection should continue and there was a likelihood of securing an investor.

The judge had in late November appointed Mr Wallace as examiner to National Crafts and its wholly owned subsidiary, Penn Castle, both with addresses at Shanagarry, Co Cork.

The appointment was supported by the directors of both companies and by Bank of Scotland Ireland while the Revenue Commissioners adopted a neutral position. The judge was told an independent accountant took the view, partly supported by an interim report from Mr Wallace, that the company could survive if certain conditions were met.

The court heard the companies had a shortfall of €277,810 and, if wound up, its liabilities would be €1.48 million.

Because of differences between the directors, the judge also made an order allowing Mr Wallace exercise the functions of directors and shareholders.