Judge approves food firm’s rescue plan

The future of awardwinning food business Fallon & Byrne was secured yesterday after the High Court approved a rescue plan for the firm.

New investment of more than €1m is to be made in the company, which employs 160 people, Mr Justice Brian McGovern heard.

The judge said he was satisfied to approve to a set of proposals put forward by the court appointed examiner to the company, which operates a restaurant and gourmet food hall at Exchequer St, Dublin.

The ruling allows the company to exit from examinership and continue to trade as a going concern.

Last January, Neil Hughes was appointed as examiner to the company after it sought protection from its creditors on grounds it was insolvent and unable to pay a €1.4m tax bill.

Mr Hughes was appointed after a report by an independent accountant expressed the view the business could survive if certain conditions were met, including securing new investment.

Yesterday Rossa Fanning, counsel for Mr Hughes, said all of the conditions set out in the independent accountant’s report had been satisfied. All but one of the firms 122 creditors have given the approval to the scheme, he added.

New investment of more than €1m had been secured for the company, which would result in changes to its corporate governance. The company’s shares are to be acquired by an entity called Sarzala Ltd.

In approving the scheme, Mr Justice McGovern noted that the examiner’s proposals “had the support of almost everybody” concerned.

The judge also said that the company’s difficulties were “not related to its trading history”.