Court appoints examiner to waste operator

The High Court has confirmed the appointment of an examiner to companies in the Barna Waste group, which is the largest domestic waste and recycling operator in the West of Ireland.

Mr Justice Brian McGovern yesterday confirmed the appointment of chartered accountant Neil Hughes as examiner to the companies Bruscar Bhearna Teoranta and its subsidiary, Joe McLoughlin Waste Disposal Ltd, which employs 270 people.

The court also heard that it is hoped the companies will be sold in a relatively short period of time.

Confirming Mr Hughes as examiner, the judge said it was “the right thing to do”.

The judge, who had earlier expressed some reservations about the application, made the appointment after being informed that the company’s main creditors Bank of Scotland, which is owed €9m, and the Revenue Commissioners, which is owed €780,000, were not opposing the application for examinership.

The court also heard that the firm’s 270 employees were supporting the application. The judge said he did not want to have a situation where waste would not be collected and the firm’s customers would be discommoded.

Barna Waste, Carrowbrowne, Headford Rd, Galway and Joe McLoughlin Waste Disposal, Drumshambo, Co Leitrim have 30,000 wheelie bin customers in counties Galway, Roscommon, Mayo, Leitrim and Sligo.

The group handles industrial, commercial and domestic waste and operates waste transfer stations, a composting facility and a recycling site.

The firms are insolvent and unable to service the debt owed to Bank of Scotland, but had a €26m turnover last year, the court heard.

Last week the directors petitioned to appoint Mr Hughes as interim examiner in a bid to secure fresh investment.

The company’s difficulties were caused by factors including the economic downturn, increased competition, increased costs and levies, it was stated.

Its directors are Sean and Annette Curran, Derryloughane East, Spiddal, Co Galway. They set up Barna Waste in 1989 and acquired JMWD in 2009.

On a going concern basis, the group has a deficit of €7.3m, compared to a deficit of more than €11m if liquidated.