‘Sad’ end as ferry service fails to secure investment

The operators of the Cork to Swansea ferry service were unable to secure the investment required to ensure its survival, the High Court heard yesterday.

A receiver is to appointed to four of the companies in the Fastnet Line, which operates the service on behalf of the West Cork Tourism Society. Three other firms in the group are to be wound up.

Yesterday, Michael McAteer, the examiner to the service, told the court that as a result of the failure to secure the required investment there was no prospect of a survival scheme being put in place that would allow the firms to continue to trade.

Mr Justice Peter Kelly on foot of an application by Mr McAteer, agreed to lift court protection granted to the firms in November.

James Doherty for the examiner told the court efforts to secure the additional investment required to secure the service’s future had failed.

As a result, counsel said Mr McAteer was no longer in a position to put together a scheme of arrangement with the firm’s creditors that would allow the service based at Ferry Terminal, Ringaskiddy, Co Cork, to continue to trade as a going concern.

“This effectively means the end of the service, which is rather sad,” said the judge, who heard 10 full-time and 60 contract workers would lose their jobs.

After the court was provided with an affidavit from Mr McAteer, the judge said the service had secured over €500,000 in funding from bodies including Cork city and county councils, West Cork Tourism and Kerry County Council.

However, efforts to secure investment from Enterprise Ireland and Finance Wales, which is an arm of the Welsh government, were not successful.

Last month, the judge extended the period of examinership to the maximum 100 days allowed after being told efforts were being made to secure the investment required.

Yesterday, the judge said “with 90 days gone” and “just 10 days of the examinership process left to go”, and “despite the best efforts” of all concerned, the court was now being told there was no prospect the investment would be forthcoming.

The court was informed the main secured creditor, Finnish Bank Aktia, which has first charge over the MV Julia, intends to appoint a receiver to four companies in the group: Fastnet Line Ltd, Fastnet Line Ship Holding Ltd, Fastnet Line Charters Ltd, and Fastnet Line Operators Ltd (Ireland).

Mr Justice Kelly also made orders winding up three other companies in the group: Fastnet Line Operators UK Ltd, Fastnet Line Crew Company Ltd, and Fastnet Line Ship Management Ltd. Mr McAteer was appointed as liquidator to the three firms.

The judge said there was no point in leaving the firms, which were clearly insolvent, “in limbo”.