Shock for investors as ferry suspends sailings
The High Court heard the Fastnet companies are insolvent with a deficit of €10.3 million on a going concern basis, rising to about €13.2m in a winding-up scenario.
The news will come as a shock to thousands of small investors in a co-operative which helped launch the Fastnet Line’s first sailing of the MV Julia between the two ports in March 2010.
The company is planning to relaunch sailings from next April to September, but will axe its winter service.
The Fastnet Line has been severely hampered by rising oil prices, with fuel costing €18,560 per voyage. It is also believed it was seriously undercapitalised from the start and experienced cashflow problems.
Cork City Council and the county councils in Cork and Kerry have already invested €700,000. Last July, the company approached Cork County Council for a further €100,000 to overcome cashflow difficulties. It repaid it the following month. The three local authorities have agreed to provide a further €150,000 for the period of examinership.
Since it began operations the company, which employs around 70 staff, has carried 150,000 passengers.
People who have made bookings will be contacted in the coming days and offered a refund.
In the High Court yesterday, Mr Justice Peter Kelly said he was satisfied to grant court protection to Fastnet Line Ship Holdings Ltd and related companies.
