Concern court-protected firms are ‘at greater risk’

A HIGH COURT judge has expressed concern the credit crisis is leading to “a much greater risk of failure” for companies placed under court protection.

The remarks were made by Mr Justice Peter Kelly yesterday, and prior to his being told in another case yesterday afternoon that a company employing 127 which was under court protection is now believed to have no reasonable prospect of survival. He appointed a liquidator to Swissco Ltd, a chilled meals company based in Little Island, Cork.

Swissco is part of a group of companies comprising Cresset, a wholly-owned subsidiary of International Cuisine Ltd, which is in turn owned by Singapore Food Industries Ltd. It was placed under court protection some weeks ago, but examiner David Carson told the court yesterday he now believes it cannot survive.