Newspaper group in liquidation

THE failed Voice Newspaper group that was backed by millionaire philanthropist Niall Mellon has appointed KPMG as liquidators to wind up the company with debts of €8.5 million.

A creditors’ meeting at the Mount Herbert Hotel in Dublin held yesterday morning was told that the estimated realised debt, based on the directors’ figures of associated companies Kilkenny Newspapers Ltd and Voice Provincial Newspapers Ltd, totalled €8.5m.

Among the notable creditors listed on the statement of affairs document for both companies that was handed out to creditors City Gate Glasgow Ltd, which is owed €5.5m — by far the largest creditor — printers Independent News & Media (Belfast Telegraph), which is owed €76,279, Cork printers Webprint Concepts Ltd (€14,907) and Langtons House Hotel, Kilkenny (€3,933).

According to figures listed under preferred creditors the Revenue Commissioners are owed €335,674 while Voice staff are still owed €44,148, relating to wages, pay in lieu of notice, holidays owed and redundancy payments. Also outstanding is €1.4m in unsecured directors’ loans, which company founder and director of Kilkenny Newspapers Ltd John Sheils said was used to set up the company.

The total monies owed by advertisers to the Voice group is €1,258,744, however, in the current economic climate, and due to that figure being made up many smaller debtors, the directors only expect to get back €310,000 — a sum from which KPMG will be paid.

Mr Sheils told a representative for the Revenue Commissioners that there were no assets in the Kilkenny headquarters and that in all his time there he never took a salary, benefits nor claimed expenses because he was waiting for the company to become profitable before doing so. He also stated that some debts went as far back as six months.

The Voice was founded in 2005 in Kilkenny by Mr Sheils. After a promising beginning in Kilkenny, 10 other titles were eventually founded. However, due to poor advertising revenue, the titles suffered and at one point directors’ paid staff wages out of their own pocket. By December 2008 all Voice titles ceased operation.

KPMG’s Kieran Wallace, who was appointed liquidator, was unavailable for comment yesterday.