TWO companies operating eye laser surgery clinics in Dublin and Cork have been placed under the protection of the High Court after it was told they have a reasonable prospect of survival.
The companies incurred losses as a result of increased competition in recent years but are hopeful of survival following a number of measures, including the implementation of substantial price reductions, Mr Justice Peter Kelly has heard.
The judge granted an application by Gary McCarthy, for the companies, to appoint David Swinburne of KPMG as examiner to KPW Laser Ltd, Copley Street, Cork, and SMW Laser Ltd, Model Farm Road, Cork.
KPW was incorporated in 2005 and SMW in August 2006 and both trade under the name Eye Laser Ireland (ELI). ELI operates clinics in Dundrum, Dublin and Cork and a referral clinic in Limerick and the companies have made substantial investments in laser technology, Mr McCarthy said.
The court heard SMW has an excess of liabilities over assets of e3.3 million while the figure for KPW is e544,000.
Due to several measures, including the near halving of the cost of procedures through reducing fees to surgeons, the business was now viable but its historic losses had caused significant difficulties.
Mr Justice Kelly said he was satisfied to appoint Mr Swinburne asexaminer.
While the companies were insolvent, the evidence indicated they had a reasonable prospect of survival in whole or in part provided certain conditions were met, including the securing of court protection and the capitalisation of investors loans of some e1.6m.
The judge also noted two possible investors had been identified.
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