High Court appoints provisional liquidator to bus company

Revenue has succeeded in its High Court application to have a provisional liquidator appointed to a Co Meath-based bus company.

Mr Justice Richard Humphreys on Wednesday appointed insolvency practitioner Mr Aidan Murphy of Crowe Ireland as provisional liquidator to Enfield Coaches Ltd, of Rathcore, Enfield, Co Meath.

The court heard that the company provides coach and related transport services.

At the High Court, Arthur Cunningham Bl for the Collector General of the Revenue Commissioners said his client is owed €39,000 as unpaid PAYE, PRSI and interest.

Counsel said that the collector general was seeking the appointment due to concerns over the transfer of assets, namely three buses, from the company to what it believes is a related company called M4 Direct Travel Ltd.

Another matter of concern, Counsel said, is that late last month the company called a creditor's meeting with a view to appointing a liquidator to the firm.

A statement of affairs was made available to creditors at that meeting, which counsel said showed that the company had preferential debts of €133,000 and unsecured debts of €815,000.

The statement of affairs also indicated that the companies net assets, namely 19 buses were valued at €5,000.

However, that meeting broke up and a liquidator was not appointed counsel said. Another creditor's meeting is due to take place later this month.

In all the circumstances counsel said that Enfield Coaches is unable to pay its debts and this was an appropriate case where a provisional liquidator should be appointed by the court.

The appointment of a provisional liquidator would allow for the orderly winding up of the company, counsel added.

Following counsel's submissions, Mr Murphy's appointment as provisional liquidator was confirmed by Mr Justice Humphreys.

The mater will return before the court later this month.