Court approves €104m capital cut

A MAJOR agri-food group has secured court approval for a €104 million reduction in its share capital arising from collapsing land and property values.

Origin Enterprises plc, a holding company for a group of companies including Odlums, Shamrock Foods, Boland Mills and RH Hall, remains profitable, in a healthy state and solvent as does its subsidiaries after the share capital reduction, Mr Justice Peter Kelly noted yesterday.

Brian Kennedy, for Origin, with offices on Thomas Street, Dublin, said it is a holding company for a group of companies involved in the agri-nutrition sector and feed and cereal milling. It also holds various property assets and includes companies trading in Ireland, the UK and other European countries.

The judge yesterday approved Origin’s application for the reduction in its share capital from more than €265 million to some €160.4 million after being satisfied the reduction would have no adverse effect on the group’s solvency or prejudice its members and creditors.

Mr Kennedy had told the court an emergency general meeting of the group had unanimously supported the proposed reduction, subject to court approval, earlier this month. He said the company had significant assets even with the share capital writedown and continued to trade profitably.

The judge said the application arose because of the loss of a significant part of its capital due to a writing down of property values, including 32 acres in Cork’s South Docks, 55 acres near Naas, Co Kildare, and 11 acres off the M4 motorway, south of Kilcock, Co Kildare. The value of the properties was being written down by between 69 and 75 per cent.