The High Court has confirmed court protection for companies in the Barna Waste group, the largest domestic waste and recycling operator in the west of Ireland, employing 270 people.
Mr Justice Brian McGovern yesterday confirmed chartered accountant Neil Hughes as examiner to Bruscar Bhearna Teoranta and its subsidiary, Joe McLoughlin Waste Disposal Ltd. The court also heard it is hoped the companies will be sold in a relatively short period.
The judge said he considered that confirming Mr Hughes as examiner was “the right thing to do”.
The judge had earlier expressed some reservations arising from matters raised by Bank of Scotland but made the appointment after being informed the bank, the company’s main creditor, owed €9 million, and the Revenue Commissioners, owed €780,000, were not opposing the application for examinership and the employees were also supporting examinership.
Customers
The judge said he did not want to have a situation where waste would not be collected or the firm's customers would be discommoded.
Barna Waste, Carrowbrowne, Headford Road, Galway, and Joe McLoughlin Waste Disposal, Drumshambo, Co Leitrim, have 30,000 wheelie bin customers in Galway, Roscommon, Mayo, Leitrim and Sligo. The group handles industrial, commercial and domestic waste and operates waste transfer stations, a composting facility and a recycling site.
The firms are insolvent and unable to service the debt owed to Bank of Scotland but had a €26 million turnover last year, the court heard.
Last week, the directors petitioned to appoint Mr Hughes interim examiner in a move to secure fresh investment.
The directors feared attempts by Bank of Scotland to sell the group’s assets could result in job losses and creditors not being paid, the court heard.
Downturn
The company's difficulties were caused by factors including the economic downturn, increased competition, increased costs and levies, it was stated to the court.
The company’s directors are Sean and Annette Curran, Derryloughane East, Spiddal, Co Galway. They set up Barna Waste in 1989, and acquired JMWD in 2009. On a going concern basis, the group has a deficit of €7.3 million, compared to a deficit of more than €11 million if liquidated.
