The High Court yesterday appointed a provisional liquidator to chicken processors Castlemahon Foods Products, which has debts totalling almost €15 million.

Declan McGrath, counsel for the company, told Mrs Justice Elizabeth Dunne that, in the year to April last, Castlemahon Foods Products had lost €5.779 million. Cumulative losses over the past five years came to €19.27 million.

Mr McGrath, who appeared with John Doyle of Dillon Eustace, Solicitors, said the parent group, O'Kane Group Ltd, had borne the losses, while attempts had been made to prepare a rescue plan following extensive talks with farmers and trade unions.

He said that, while the negotiations had been facilitated by the Labour Relations Commission in a bid to save the company's 300 employees and the jobs of hundreds of chicken growers, the plan was unable to be implemented.

Mr McGrath said that the company, which is located near Newcastle West in Co Limerick, operated in an extremely competitive market and had traded at a loss for a number of years.

A number of attempts had been made to restructure the business in order to restore its profitability.

Company director Michael Donoghue, of Beechfield, Antrim, said in an affidavit that one of the core problems faced by the firm was that its wage rates were significantly higher than market rates and, having regard to the very competitive market in which it operated, the company had suffered from a lack of competitiveness.

He said the company formed part of the O'Kane Group of companies which had extensive interests on both sides of the Border. Other directors were William Lattimore, Anthony O'Neill and Philip Maguire. Patrick Mulvihill and Tadhg O'Shea had been directors until their resignation in May last.

The company operated a feed mill, hatchery and processing plant in Castlemahon, Co Limerick, and was supported by 18 broiler breeder sites and 60 broiler growing sites, 12 of which were dual purpose chicken and turkey sites.

Mr McGrath told the court that the company had debts of €14.9 million with assets of €11 million. The primary concern of the company was to appoint a provisional liquidator to secure the assets of the company and to assure the best possible outcome for its creditors.

He said that there was also the problem of the welfare of 1.1 million birds.

He told the court that a liquidator may be able to sell part or all of the business as a going concern.

Judge Dunne appointed Kieran Wallace of KPMG provisional liquidator and adjourned until October 23rd a hearing for the winding up of the company.