Bank opposes protection of court for waste firm

THE HIGH Court has been told that Bank of Scotland is opposing court protection for waste collection company Mr Binman and related companies employing 331 people. Mr Binman, described as among the top five waste collection companies in the State, also operates the local authorities’ waste-gathering services in Limerick city.

Ms Justice Mary Finlay Geoghegan will hear the company’s petition to appoint an examiner, which would mean court protection would continue while the examiner devises survival proposals which will need to be approved by shareholders, a majority of creditors and the court.

An interim examiner, William O’Riordan of PricewaterhouseCoopers, was appointed last week. When the matter came before the court yesterday, Paul Sreenan SC, for Bank of Scotland, the group’s biggest creditor, said it had filed an affidavit opposing examinership.

Alison Keirse, for the Revenue Commissioners, which is owed €1.4 million, said her client was critical of the company’s management practices but was “guardedly neutral” in relation to the core test for examinership – if a company had a reasonable prospect of survival.

The judge was also told that Greenstar, which is owed €2.5 million, and Limerick County Council are supporting the petition.

Lyndon MacCann SC, for Mr Binman, said he needed time to reply to affidavits and the judge adjourned the matter for hearing tomorrow.

The Mr Binman group of companies, with registered offices at Luddenmore, Grange, Kilmallock, Limerick, employs 331 people, about 10 independent contract staff and claims another 200 people are indirectly dependent on it for their livelihoods.

The group is primarily involved in waste-collection and recycling services in Munster and Galway, with 56,900 domestic customers and 5,500 commercial customers.

The group claims it has faced a number of setbacks and challenges since 2008, including difficulty accessing funding and significant pricing pressures in the sector.

On October 7th, Bank of Scotland said it would not provide further credit facilities with the effect it could no longer trade as a going concern, the group said. It claims it has a viable business and that it is in the best interests of creditors that an examiner be appointed.