Provisional liquidator concerned over deficit in client monies of security cash-in-transit business

The provisional liquidator of private security firm Business Mobile Security Services Ltd (BMSS) has told the High Court that he is concerned that the company's client account may have a deficit of up to €1.7m.

Provisional liquidator concerned over deficit in client monies of security cash-in-transit business

The provisional liquidator of a private security firm has told the High Court that he is concerned that the company's client account may have a deficit of up to €1.7m.

Last month experienced insolvency practitioner Mr Joe Walsh of JW Accountants was appointed as provisional liquidator of Business Mobile Security Services Ltd (BMSS), the holding company of Senaca by Mr Justice Senan Allen.

The company with a registered address at Tougher Business Park, Newhall, Naas, Co Kildare, provided security services including a cash-in-transit business to various clients.

The company went into liquidation due to cash flow difficulties.

Today, Mr Walsh, represented in court by Stephen Brady Bl, returned to the court and informed Mr Justice Bernard Barton that he had concerns about the size of the deficit in the company's client account.

Counsel said that when the High Court was petitioned to appoint a provisional liquidator there was an acknowledged deficit of €1m in the firm's client account.

It appeared that client money had been used to fund the company, counsel said.

Counsel said that from his preliminary investigations into the company's accounts Mr Walsh was now concerned that the deficit could be much higher than originally thought, and could be as much as €1.7m.

Counsel said that dozens of creditors have made contact with the provisional liquidator seeking to have their cash returned to them.

One example of this counsel said was that solicitors representing Horse Racing Ireland had written to Mr Walsh seeking the return of €539,000.

Other clients of the company include charities and bookmakers, the court heard.

Counsel said that Mr Walsh's investigations into the company are continuing, but that the matter was urgent.

In order to facilitate the ongoing liquidation, counsel said his client required that the matter returns before the court in order so legal issues arising out of claims made by creditors can be dealt with.

Creditors of the company will be formally informed about the hearing and can make any arguments or submissions about their claims, counsel added.

Mr Justice Barton, noting Mr Walsh's concerns, agreed to adjourn the matter to next Friday's sitting of the High Court.

- Additional reporting by Ray Managh

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