Swedex liquidator to pursue directors

TWO DIRECTORS of a wound-up company should be made personally liable for its debts on grounds of “brazen” conduct in using company monies, allegedly generated as a result of “a massive fraud” to fund their “lifestyle of choice” with no thought for creditors, the company’s liquidator has argued.

The Revenue Commissioners have agreed to provide the funds necessary for Michael McAteer, liquidator of Swedex Windows Doors Ltd, Ballyrogan Stud, Redcross, Co Wicklow, to bring proceedings under the Companies Acts against Ralph and Charlotte Gervais, Ballydavid House, Woodstown, Co Waterford, the Commercial Court heard.

Mr McAteer noted the couple denied the claims against them.

The liquidator wants orders making both personally liable for the company’s debts and also requiring Mr Gervais to pay €2.25 million for personal expenses allegedly paid for by the company’s credit card and for alleged breach of duty and trust.

Among several claims by the liquidator, it is alleged that Swedex secured €1.24 million from a bank based on false invoices and paid the €430,968 costs of improvements in and around Ballyrogan Stud, described as the then Gervais family home, including construction of a conservatory, landscaping, gravel and flowers.

Mr McAteer said he rejected explanations that the improvement works were a precursor to efforts to move into the conservatory market. The conservatory was not used as a showroom, he said.

Swedex appeared to have paid €663,749 for employees from whom it received no benefit at all or an incomplete benefit, he said.

The action was admitted to the Commercial Court.