The High Court has appointed a provisional liquidator to an Irish-registered company that makes, sells and distributes a premium Russian vodka.
Ms Justice Leonie Reynolds appointed insolvency practitioner Shane McCarthy of KPMG as provisional liquidator to Taiga Shtof Ltd, with a registered address at Laburnum House, Fairgreen Road, Ballymote, Co Sligo, after being satisfied the company is insolvent and unable to pay its debts.
The vodka is made in Russia, marketed in exclusive handmade bottles and shipped to its main market, the US, via Latvia.
The court was told the company got into difficulties arising out of a dispute between two of the firm's shareholders with a third shareholder, Islam Magkometov.
The dispute was due to production deadlines not being met, lack of funding, unpaid production and supplier expenses that resulted in delays in the business, the court was told.
The product was meant to be launched in September 2016 but was not released until last December.
Kelley Smith BL, for Raman Gazine, of Bouscat, France and Francisco Xavier Fermin De Eizaguirre, with an address in the French overseas territory of St Martin, two shareholders and promoters of the company, said they had reached an impasse with Mr Magkometov and were petitioning for appointment of a liquidator.
Preserve value
Counsel said the intention was to preserve the value of the company’s main asset, its brand name and intellectual property rights, for the firm’s creditors.
Her clients had advanced loans to the company and are also creditors, she added.
A liquidator was also needed to secure an exclusive distribution agreement for the US, which needs to be executed before November 7th, counsel said. The deal had not been executed due to the uncertainty with the company, counsel said.
Counsel said her clients are willing to buy the company’s assets but only if the distribution contract could be executed. Otherwise, the assets would have no value, she said.
The judge, after appointing Mr McCarthy as provisional liquidator, adjourned the matter to next month.
