Green light for Superquinn sale as examinership petition withdrawn

Superquinn's proposed sale to Musgraves is set to proceed after a petition seeking to have the company put in examinership was withdrawn.

This morning the High Court was informed an application by Superquinn for examinership was being withdrawn after Musgraves announcement that a €10m fund is to be established to reimburse certain creditors of the company. That scheme is dependant on the sale of Superquinn to Musgraves.

The Superquinn chain, which employs 2,600 people, went into receivership last week.

This morning at the High Court Brian O'Moore SC for the receivers and Bank of Ireland told Ms Justice Mary Finlay Geoghegan that matters had been resolved between the parties and the petition seeking the appointment of an examiner could now be struck out.

Lyndon MacCann SC for the company and two of its directors said in light the "very significant offer" made by Musgraves to suppliers, his clients were happy to withdraw their application seeking to have the company put into examinership, giving it protection for up to 100 days from its creditors.

Counsel said his clients were "now supporting the receivership process".

Counsel added his clients had "nothing to gain personally" in seeking to have an examiner appointed to Superquinn. Counsel said they entered the process to ensure that employees and suppliers of the the company "were properly looked after".

Rossa Fanning Bl for Musgraves said his clients are "very relieved" with the course of action being adopted by Mr MacCann's clients.

Ms Justice Finlay Geoghegan, in striking out the proceedings, welcomed that an agreement had been reached between the parties.

Joint receivers were appointed to Superquinn by a Bank of Ireland-led syndicate of banks last week. Some €275m was owed to the banks, mainly deriving from Superquinn’s property dealings, while unsecured creditors – mainly suppliers – were owed an estimated €55m.

News of the settlement came while the court was due to resume hearing a preliminary hearing whether, on July 18 last, the company made a valid resolution to petition the court for appointment of an examiner. Two directors Mr Keiran Ryan and Mr David Courtney claimed such a resolution was passed.

Another director Mr Simon Cantrell disputed that and said he never formally agreed with his co-directors that the company should apply to the High Court to have an examiner appointed to the company.

The court was also asked to decide whether that petition was brought within the three-day period stipulated under the Companies Act. Depending on the outcome of the judge's decision on those and other issues the hearing of petition was provisionally scheduled to be heard on Thursday.

If the court decided the examinership petition can be heard, that petition would have been opposed by the receivers, Musgraves Group plc, which claims it has binding contracts to buy Superquinn, and a syndicate of bank creditors.