Sweet success as 25 jobs saved at Skelligs Chocolate

Paddy McKillen Jr's bust business in Ring of Kerry has secured new investment of €350,000

Scheme of arrangement folds new life into Seaclaidi na Sceilge Teoranta, the company behind Skelligs Chocolate.

Skelligs Chocolate and the jobs of 25 workers at the Ring of Kerry factory have been saved through the intervention of examinership, the Circuit Civil Court was told on Monday.

Judge John O’Connor heard that Paddy McKillen Jr's business had secured new investment of €350,000 and it is understood McKillen has indirectly ploughed new finance into the company.

Graham Kenny, for examiner Joseph Walsh, told Judge O’Connor that a financial rescue scheme, moulded by Mr Walsh and proposed with the agreement of the company’s creditors, was being presented for the court’s approval.

Judge O’Connor, following details of the rescue plan having been put to the court, approved a scheme of arrangement that folds new life into Seaclaidi na Sceilge Teoranta, the company behind the Co Kerry chocolate business.

Mr Kenny, presenting Mr Walsh’s report outlining his rescue plans, told Judge O’Connor that a €246,000 investment by Isle of Man company  Vermillion Limited would go to paying off agreed and renegotiated creditors’ debts.

The solicitor told the court that the investment would, in particular, provide working capital for the company and also cover legal costs of the examinership.

Mr Kenny said the new investment would be made by way of equity rather than a loan and he believed this would have positive results for the future prospects of Seaclaidi na Sceilge.

He told Judge O’Connor, who approved Mr Walsh’s proposals on the basis they seemed satisfactory, that the company had traded successfully under the protection of the court throughout the examinership.

Vermilion Ltd is connected to the McKillen family and Mr McKillen Jr had earlier intimated to the court that he was prepared to be involved in the financial rescue of the company.