Cappoquin

By Ray Managh

Cappoquin Poultry Limited, the debt-ridden Co Waterford chicken processing company, has a reasonable prospect of survival as a going concern, the High Court was told yesterday (Wed).

Barrister Ross Gorman, counsel for the largest unsecured creditor Henry Good Limited, Kinsale, Co Cork, said it was the view of independent accountant Kieran Wallace, of KPMG, that the business of CPL could be saved with the protection of the court in Examinership.

Mr Gorman told Mr Justice John Cooke that CPL, which directly employs 136 workers and dozens of dependent contractors, had debts totalling €6 million, almost €4 million of which was owed to Henry Good Ltd (HGL).

He said HGL had last week petitioned the court for the appointment of interim examiner Michael McAteer, of Grant Thornton, and now sought to have him appointed Examiner.

Mr Brian Kearney, counsel for CPL and CPHL, its holding company, said his clients had concerns about the ability of the two companies successfully emerging from Examinership and wished both companies to be liquidated.

He said Henry Good Limited wanted the Examiner appointed to both companies and while still maintaining their concerns were prepared to remain neutral for the sake of the 136 jobs involved.

He submitted there was no legal way an Examiner could be appointed to the holding company which owned only property that was leased to CPL and was not indebted to anyone.

Solicitor Michael Walsh appeared for Cappoquin Poultry Producers who were owed €1.18 million and were responsible for three quarters of the throughput of the company. Rossa Fanning, B.L. said he appeared for Mr McAteer, the interim examiner.

Mr Gorman said HGL was the main chicken feed supplier to Cappoquin Poultry which, his client, claimed was insolvent. CPL supplies local farmers or growers with one day old chicks, who house and feed them until they are delivered back for processing.

Henry Good Limited claimed the company’s directors Perwaiz Latif, Derby, England, and Zahid Hussain, Port Na Habhann, Cappoquin, Co Waterford, had failed to collect €2.69 m debt owing to CPL from a Derby company it believed was owned by Mr Latif’s brother.

Mr Latif, in an affidavit, alleged that HGL had on several occasions threatened to seek liquidation of Cappoquin Poultry Ltd if it did not pay the price HGL demanded for its chickenfeed.

Mr Gorman said alleged attempts by the directors to move essential machinery and equipment from Cappoquin was hotly contested. He said there was strong support for the examinership by suppliers and other creditors.

Judge Cooke said he would take up the remainder of the hearing this (Thursday) morning.

* Copyright Ray Managh