The High Court has appointed an interim examiner to a toy-making firm employing 41 people here.
Ms Justice Caroline Costello on Friday appointed Neil Hughes as interim examiner to Yvolve Sports Limited, which makes the popular 'Flicker' scooter and other products for the outdoors and sports.
The appointment was made after the court was told an examiner was required to protect an important contract which the firm has with US retail giant Walmart.
The company sought court protection due to the bankruptcy of one of its major customers, Toys R US, which it said has resulted in cash flow problems, and a dispute between Yvolve’s Irish based directors and directors based in Tiawan.
An independent expert had in a report expressed the view, while the company is insolvent, it has a good prospect of surviving if certain steps are taken including the appointment of an examiner.
Ross Gorman, for Clovergade Ltd, a 36 per cent shareholder in Yvolve Ltd, had on Tuesday sought the appointment of Mr Hughes as interim examiner.
The case had been adjourned to June 15th but it returned before the court on Friday when Sino Foreign Trading Company, which owns 49 per cent of the firm, sought to have another insolvency practitioner, John McStay, appointed as examiner.
Ailill O’Reilly, for Sino, said it had no issue with Mr Hughes but was seeking the appointment of their candidate due to the breakdown in relations between the shareholders. His client believed an examiner was required to ensure suppliers in China were paid so the firm can fulfil its contractual obligations to Walmart.
The loss of that contract would be extremely detrimental to the company, he said.
Mr Gorman urged the court to nominate Mr Hughes as interim examiner on the basis his client’s application for examinership was first in time.
Ms Justice Costello said she was satisfied to appoint an interim examiner to the company.
She said the court, given the quality of the two proposed examiners, had “an embarrassment of riches” to choose from.
However, she was selecting Mr Hughes on the grounds his proposed appointment came first in time.
The case was adjourned to June 15th.
