Judge questions the merits of company examinerships

A High Court judge has said he is becoming “more and more reluctant” to grant court protection to companies given the high failure rate of examinerships due primarily to their failure to attract necessary investment.

Mr Justice Peter Kelly made the comments at the Commercial Court yesterday when ending court protection for two companies producing and selling pottery under the Stephen Pearce brand. He was told Bank of Scotland Ireland, the main creditor of the companies, would appoint a receiver yesterday.

Both the judge and the companies’ examiner Kieran Wallace also expressed concern at Bank of Ireland’s action in setting off a debt of e46,000 owed to it by the companies against monies in a separate BOI account opened by the examiner to facilitate trading during examinership.