It may be possible to formulate a scheme of arrangement for a Co Tipperary pharmaceutical group with liabilities of more than €23 million that would give creditors a more favourable return than would be possible were the companies wound up, the High Court was told yesterday.
That hope was expressed by Mr Tom Grace who, on October 29th, was appointed interim examiner to companies in the Miza Ireland group, formerly Antigen, which employs 250 people in Roscrea.
Mr Grace, appointed interim examiner on the petition of Bank of Ireland and Bank of Scotland (Ireland) Ltd, was appointed examiner to the group yesterday.
Under a survival plan approved by the High Court last November, Canadian firm Miza Pharmaceuticals and British company Goldshield bought debt-stricken Antigen for €35.3 million. Miza promised to invest €6.7 million in the Roscrea plant but now has its own cash problems. The survival scheme did not work because Miza failed to make the investment envisaged.
Applying to have Mr Grace appointed examiner yesterday, Mr Eoin McCullough, SC, for the two banks, said Bank of Ireland was a creditor for €9.3 million, while Bank of Scotland was a creditor for €1.4 million. Another company, Boehringer Ingelheim Ltd, was a creditor for €2.35 million. Mr Justice Abbott was told the Revenue Commissioners had preferential debt of some €2.4 million and non-preferential debt of €280,000.
In a report presented yesterday, Mr Grace said books and records showed the total liabilities of the companies of €23.115 million on October 28th comprised preferential creditors of €2.485 million and unsecured creditors of €20.630 million. He was also on notice of the creation of certain securities over the assets of the companies but had not had an opportunity to consider the position in detail.
Mr Grace said he had been in discussions with interested parties concerning the business of the companies. Goldshield had committed to make funding available for the period while the companies were under court protection. Without this funding, he believed it would not be possible to maintain the company's business during the period.
The companies over which Mr Grace is examiner are Mitek Holding Ltd, Mitek Pharmaceuticals Ltd, Castleholding Investment Co Ltd, Mitek and Miza Ireland.
