Interim examiner appointed to Eddie Rockets franchise

The High Court has appointed an interim examiner to the operator of an 'Eddie Rockets' restaurant franchise that employs 25 people.

Curra Properties Ltd, that operates Eddie Rockets at the Stillorgan Shopping Centre, in Dublin has run into financial problems because it is unable to service an historic debt of €1m owed to Revenue. That debt was caused by an ex-employee who embezzled substantial funds from Curra.

Today at the High Court Mr Justice John Cooke said that he was satisfied to appoint insolvency practioner Mr Gary Lennon as examiner to the firm, giving it up to 100 days' protection from its creditors.

The court was informed while Curra, with a registered address at Stillorgan Shopping Centre, was insolvent and unable to pay its debts an Independent Accountant's Report suggested the company has a reasonable prospect of survival as a going concern if certain steps are carried out.

Those steps include obtaining court approval for a scheme of arrangement agreed between the company and its creditors, and securing fresh investment in the company.

The business has operated as a landmark restaurant in the area since 1994.

Ross Gorman Bl for Curra said it was in the best interests of all concerned that an examiner be appointed to the firm. Counsel said there would be a deficit of €2.1m if the firm was wound up, whereas that deficit would be much lower should the business survive as a going concern.

Despite the firm's difficulties counsel said there was every prospect that the company will survive as its business was sound and is capable of generating a profit. Counsel added that the franchisor Eddie Rockets is supporting Curra's application for examinership.

Counsel said his client was currently crippled mainly due to the "historic debt" caused by the activities of a former employee.

Counsel said the ex-employee in question, who falsely claimed to be qualified to audit the firm's books and records, "took money due to Revenue and used it for their own purposes." The same ex-employee also "significantly underestimated" the firm's liability to Revenue.

Counsel said this activity took place over a number of years until 2008 when the directors of the company discovered what was going on.

In order to deal with its debts counsel said Curra entered into an arrangement to make payments to Revenue.

Curra now found itself in a position where it is falling behind in its payments.

Counsel added the company also suffered cash flow difficulties after it refurbished and expanded its business.

Mr Justice Cooke made the matter returnable to a date later next month.