The High Court has confirmed the appointment of a provisional liquidator to one of Ireland's oldest car rental businesses Murray's-Rent A Car.
The Court heard the company, which has more than 60 employees, sought to be wound up after a proposed €34m deal to sell development property to supermarket chain Superquinn fell through.
As a result the company was unable to meets its debts and is insolvent. Its main creditors include Bank of Ireland, Permanent TSB, Dublin Airport Authority and Revenue Commissioners.
The company and its predecessor was founded by Harold F Murray in 1948.
In recent time the firm was the Irish franchise holder for the German car hire giant Sixt, which is one of the biggest car hire firms in the world.
This evening at the High Court Mr Justice Roderick Murphy confirmed the appointment of Mr Ken Fennell as provisional liquidator to the Murray's Rent-A-Car Ltd after being told the company had become insolvent and unable to pay its debts.
The judge said he was satisfied to appoint Mr Fennell, who was further granted powers allowing him to run the firm's car hire business. Mr Fennell's appointment was sought after a resolution to wind up the firm was passed by the company's board of directors on Thursday.
Bernard Dunleavy Bl, appearing with Anthony Thuillier Bl, for the company said the board of directors decided to petition the court for Mr Fennell's appointment in was in the best interests of all parties that a liquidator be appointed as soon as possible.
This counsel said was "to avoid a disorderly wind up of the company."
Counsel said Murray's successfully exited examinership after seeking the protection of the courts in 2009 after a scheme of arrangement with the firm's creditors was approved by the High Court.
While Murray's suffered losses due to factors including the drop in tourist numbers and the costs involved the upkeep of its car fleet, it had until the end of September been meeting all its repayments under the scheme.
It had expected to receive some of the proceeds of the proposed sale involving a related company of Murray's, of development land to Superquinn.
That proposed deal, following the appointment of receivers to Superquinn, did not go ahead because the supermarket did not have the resources to perform the contract.
While no issue was taken over that decision counsel said Murrays' were left in a position where they would not be able to make repayments arising out of the scheme of arrangement.
"The final straw," counsel said came this week when Bank of Ireland served a demand in recent days for repayment of more than €500,000. It would also have difficulties in making all of its payments due to Revenue at the end of the month.
Counsel said that it is estimated that as a result of the company's application it had liabilities over assets of €7m. Counsel added that value of its fleet is worth €5m and it operated car hire desk at Dublin, Cork and Shannon Airports.
The matter was made returnable to a date later this month.