A COURT may be asked to liquidate CanAmerica Ltd, a major Irish specialist tour operator to the US and Canada.
Judge Jacqueline Linnane was told in the Circuit Civil Court yesterday that the company, whose headquarters is in Middle Abbey Street, Dublin, had asserted it was unable to pay its debts.
Ms Eileen McAuley, counsel for Gabrielle Love, who won a personal injuries claim award of €22,538 and costs against CanAmerica in 2006, said the sum due by CanAmerica had not been paid to Ms Love and a formal threat to wind up the company had been sent in June 2007.
Ms McAuley told the court that Ms Love, a director of a company called Antgab Ltd, had agreed her damages award against CanAmerica Ltd should go towards part settlement of a €26,665 debt Antgab owes another firm, Webfactory, for services rendered.
Ms McAuley said CanAmerica Ltd had been written to by solicitors DJ Synnott & Co, who had represented Ms Love in her personal injuries claim, seeking €36,044 payment of the award including legal costs.
Synnott & Co had written to Gregory Ryan, solicitors, for Webfactory, stating they had never received monies in settlement of the personal injury award and that they were considering taking steps towards the liquidation of CanAmerica Ltd. Ms McAuley said that in a letter of May 11th, 2007, Dermot M Dempsey & Co, solicitors for CanAmerica, had stated CanAmerica "is not in a position to discharge the amount of the judgment awarded against them."
Solicitor Gregory Ryan, in an affidavit read in the Circuit Civil Court yesterday, said this statement was very strange having regard to the fact that CanAmerica was a company which had operated in the Irish market for some time. He said it would be even more strange if CanAmerica had not been insured during the period when it was carrying out its business.
"CanAmerica are now carrying out a radio advertisement campaign seeking to promote and increase their business, something which does not fit well with their assertion that they are unable to pay their debts," Mr Ryan said.
Ms McAuley said solicitors on behalf of Ms Love were now going to apply to wind up CanAmerica.
She said Ms Love was happy for the damages due to her from CanAmerica to be paid towards reduction of the debt owed by her old company, Antgab, to Webfactory.
She said it may yet be necessary to bring the two directors of CanAmerica before the court to explain their financial position. They were named as Frank Kelly (57), of Biscayne, Malahide, Co Dublin, and Frank Kelly (52), of the same address.
Judge Linnane made a conditional order of garnishee against CanAmerica in favour of Webfactory, Upper Fitzwilliam Street, Dublin 2.
