Court approves examiner to hardware supplier

The High Court has approved the appointment of an examiner that supplies hardware, timber preservative and bathroom products and that employs 45 people.

Today Mr Justice John MacMenamin said he was satisfied to appoint Mr Kieran Wallace of KPM as examiner of Protim Abrasives Ltd, Northwest Business Park, Ballycoolin, Dublin 15 on the basis that information contained in an independent accountant's report showed that the company has a reasonable prospect of survival as a going concern.

The company went into examinership because it is insolvent and cannot pay its debts. While it still has an excess of assets over liabilities it is unable to finance any further consolidation of the business.

The company said that it faces the imminent withdrawal of its bank facilities because it is not in a position to offer additional security to its bank NIB.

Its main creditors are National Irish Bank who are owed €4.9m, and the Revenue Commissioners who are owed €235,000.

A statement of affairs for August 2009 showed that the firm has assets of €13.2m against liabilities of €11.9m. In a liquidation scenario there would be a deficit of €6.25m. There were no objections to Mr Wallace's appointment.

Its petition seeking the appointment of an examiner the company claims that it is viable as a restructured and rationalised business, focused on areas such as repairs maintenance and improvement markets.

To do that it requires the protection of the court to allow an examiner come up with a scheme of arrangement that would allow the firm survive.