Examiner appointed to electrical firm Ashcoin

A High Court judge has appointed an interim examiner to an electrical and mechanical sub-contracting firm that employs more than 120 people.

Today at the High Court Ms Justice Mary Finlay Geoghegan appointed Mr Declan Taite of Farrell Grant Sparks as examiner to Ashcoin Ltd, with a registered office at Bellevue Industrial Park Glasnevin Co Dublin, after being informed that the company has a reasonable prospect of survival.

The court was told by Mr Rossa Fanning BL, for Ashcoin, that the company which provides electrical and mechanical installations to commercial industrial and retail establishments in Ireland and Europe had traded successfully since it began operations in 2000.

Its turnover for 2006 was €16m and that is expected to rise to €18m for 2007, and it currently employs 126 people.

Mr Fanning told the court that the company got into difficulty as a result of entering into an arrangement called Mech Tec in January of last year.

The company took over the employment of all of Mech Tec's employees in order to provide mechanical engineering services to Ashcoin's customers.

However this acquisition had resulted in a net loss to the company of approximately €1.62m and has adversely effected the company's cash flow position.

The court was told that the company's main creditors include the Revenue Commissioners, of whom it is in arrears of €1.9m, and Ulster Bank.

Counsel said that the company has reached an agreement with Revenue whereby the company is discharging its tax liabilities in installments.

Counsel added that a report into the company, carried out by an independent accountant, is of the view that if certain schemes of arrangements are entered into and ultimately accepted then company has a reasonable prospect of survival, and the majority of the employers would be retained.

Ms Justice Finlay Geoghegan in appointing Mr Taite as interim examiner made the matter returnable for a date later next month.