The High Court yesterday appointed an interim examiner to the Antigen group of companies, a specialist manufacturer in the pharmaceutical industry which employs 340 people in Roscrea, Co Tipperary.
The company was unable to manufacture products between July 2000 and last month due to difficulties in implementing and validating new plant and machinery. A petition from the directors presented to the court said the downtime was five months longer than had been planned, a situation which had caused severe financial problems as the group could not supply its customers.
The granting of court protection would allow a "breathing space" within which the company could concentrate on attracting sufficient investment to enable remedial works to be undertaken, ensuring a return to profitability and the survival of the companies, the petition added.
Mr Justice McCracken appointed a Dublin accountant, Mr Jason Sheehy, as interim examiner to Castleholding Investment Co Ltd, the holding company for a number of companies within the Antigen Group, which began as a family business under the name Antigen Ltd in 1946. It is a major supplier to the British NHS.
The petition of directors Mr Padraic Marrinan and Mr George Fasenfield said the group had been profitable in almost every year of its trading, and profits generated over the previous five years had been reinvested completely in the business. Since 1996, in excess of £12.7 million (#16.1 million)had been invested at the Roscrea site.
Castleholding and its direct subsidiary had encountered difficulties with obtaining additional bank facilities from their bankers, Bank of Ireland, during the period of non-production.
The directors believed, given an opportunity to reach an agreement with creditors, that the group could be restructured successfully. That belief was predicated on the success of negotiations with potential investors. A number of companies had indicated they were interested in investing in part or all of the group and its business.
The appointment of an examiner allows the company to continue trading in a secure environment for up to 100 days while, in consultation with the examiner, it puts in place a business strategy to reflect the changed circumstances. During the examinership, all executive power will remain with the directors.
