High Court appoints interim examiner to Cara pharmacy group

Former Dragons' Den star Ramona Nicholas is a director of the Cara pharmacy group, along with her husband Canice Nicholas.

An interim examiner has been appointed by the High Court to the Cara group of pharmacies, which employs more than 160 people.

The group's directors are former Dragons' Den star Ramona Nicholas and her husband Canice Nicholas, who had opposed the application.

The application for the examiner's appointment was sought by Elm Corporate Credit DAC, which is the group's lender and its largest creditor.

Rossa Fanning, senior counsel for the company, said the group had been loss-making every year since 2016, and was insolvent. The best course of action to save the business and jobs was the appointment of an examiner, he said.

Barrister for the company Aillil O'Reilly asked the court to adjourn the Elm application for the appointment of an interim examiner to the group.

He said the directors were very concerned about the impact the appointment of an examiner would have on the employees and the communities they serve, as well as on their own professional reputations.

At the High Court, Mr Justice Michael Heslin said he was satisfied to appoint experienced insolvency practitoner Ken Tyrell of PwC as interim examiner to Cara Pharmacy Unlimited Company and a dozen related companies.

The court was not prepared to adjourn the application to appoint an interim examiner.

Noting the objections raised by the company, the judge said his decision "in no way impugns" the directors’ reputations, skills, and professionalism.

The judge said an independent expert's report stated that the group, which operates 13 pharmacies and provides prescriptions to nursing homes, has a reasonable prospect of success if certain steps are taken.

Those steps include the restructuring of the business, fresh investment in the group, and court approval for a scheme of arrangement put together by an examiner with the group's creditors.

The appointment of an examiner, Mr Fanning said, was in the best interests of all the stakeholders, including the 160 employees. Two parties are interested in investing in the group, counsel said.

Counsel said Elm was prepared to provide sufficient funds during the examinership period, on terms including that any such monies be certified by the examiner.

In the event the group is wound up there would be a deficit of €16.3m.

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