Bank opposes continuing protection to company

BANK of Ireland is opposing the continuation of court protection for a company involved in the door-to-door selling of credit of a wide range of goods to 26,000 people across the country.

Murray Nolan Ltd, with registered offices at Clonee, Co Meath, employs 55 people directly, while 65 self-employed commission-based sales agents handle door-to-door sales of goods, including clothing and homeware.

The company, whose directors are Michael Murray, Moynalvey Manor, Summerhill, Co Meath and Tom Nolan, Tankards Garden, Newbridge, Co Kildare, issues a catalogue twice yearly featuring products sourced from a variety of suppliers, but mostly from Littlewoods/Shop Direct.

The company has debts of some €5.6 million. If wound up, it claims it would have a deficit of €4.4m, but would have a deficit of some €735,283 on a going concern basis. Among the causes of its difficulties were falling sales, a reduction in the collection rate of outstanding debtors and problems with its Christmas hamper business, it said.

An independent accountant believed the company could survive as a going concern provided certain conditions are met, the court heard. The company had disposed of the hamper and savings club aspects of its business last December and was engaged in cutting staff numbers and overheads.

Bank of Ireland, its largest creditor with debts of €1.9m, is opposing examinership because it does not believe the company has a reasonable prospect of survival.

While the company had identified a potential investor who might invest €500,000, the bank said three times that sum was required and described as “optimistic and incomplete” the company’s cash flow projections for the examinership period.

Accountant Simon Coyle of Mazars was appointed interim examiner on the ex parte application of the company late last month and the matter was before Mr Justice Peter Kelly yesterday to consider whether to confirm Mr Coyle as examiner.

In a report, Mr Coyle said he believed the company could survive if Littlewoods agreed to continue to provide supplies to it.

Declan Murphy, for the company, sought an adjournment to address several issues.

Rossa Fanning, for BOI, did not object and Mr Justice Kelly adjourned the case to Wednesday.