A provisional liquidator was appointed by the High Court yesterday to USIT Ltd, which is incorporated in Northern Ireland but has operations in Dublin. The provisional liquidator, Mr Ray Jackson of KPMG, was appointed by Mr Justice Lavan on the application of National Irish Bank.
The court was told that, at a meeting, it was confirmed the USIT group of companies required approximately €80 million (£63 million) to survive. Mr Bill Shipsey SC, for NIB, presented an affidavit by Mr Ger Ryan, head of asset structuring at NIB, who said the bank had become an "unwilling creditor" of USIT Ltd to the tune of at least €3.38 million.
The function of USIT Ltd was to operate "treasury management", including receipts and bill payments, on behalf of the USIT Group of companies worldwide.
The treasury management operation was carried on at the company's Dublin offices at Aston Quay and College Green.
NIB's initial concern arose on January 10th when it became aware of significant unauthorised overdrawn positions arising on USIT's accounts with NIB. It soon became apparent to NIB there were no underlying funds to meet the cheques drawn by USIT on its accounts with NIB.
NIB retained KPMG to meet USIT's officers to clarify the position. Mr Jackson had advised that Mr James Thompson, USIT's chief financial officer, confirmed it had liabilities of €140 million and assets of €120 million, principally made up of "receivables" due from other companies in the group, giving rise to a deficit of €20 million.
At the same meeting, Mr Thompson confirmed USIT required approximately €80 million to survive.
Mr Ryan referred to further discussions and said he was advised by KPMG that last Thursday, they met a representative of PricewaterhouseCoopers (PwC), acting for an Australian travel company, STA.
Mr Ryan said he was advised that the PwC representative had confirmed a company called Sologan, wholly owned by STA, had acquired 88 per cent of the shareholding of the holding company of USIT Group, USIT World, subject to mergers and monopolies approval.
