The Revenue is owed more than €675,000 from Belenos Publications, former publisher of Business & Finance magazine, which went into voluntary liquidation two weeks ago. More than €400,000 of the money owed to the Revenue is unsecured.
At a creditors' meeting yesterday it emerged that the Revenue is the largest unsecured creditor of the company. It is also listed as the largest preferential creditor. The company statement lists Revenue as a super preferential creditor in relation to €43,087 in PRSI. As a preferential creditor, it is also owed a further €88,153 in PAYE/PRSI and €134,793 in VAT.
Other preferential creditors include the company's employees, who are owed €79,587 in salary arrears and €58,799 in redundancy and holiday pay. More than €6,300 is owed to Dublin Corporation in rates. According to the company's statement of affairs, the amount available for preferential creditors is €299,715, leaving a deficit of €111,052.
Brookfield Printing, which continues to publish Business & Finance under new owner Moranna Ltd, is the second-largest unsecured creditor and is owed more than €128,000.
Questioned by one creditor as to why Brookfield continued to publish the magazine if it was owed money by the company in liquidation, Mr Ian Hyland, the new owner, said he could not speculate on the reasons and said Brookfield was not being treated in a different manner from any other creditor.
Mr Finian Loftus, an inspector with the Revenue, asked Mr Hyland why the company was estimating to realise only €555,882 when it had trade debtors of €876,277. He also questioned why the investment in the company's iCommerce Market Limited subsidiary was valued at zero. Mr Hyland said the company was being conservative in its estimation and was presenting a worst-case scenario in an effort not to mislead the meeting.
Mr Hyland also said it would be inappropriate for him to speculate at this juncture on a query by Mr Loftus as to why the company lost so much money in the past 12 months, adding that this was a matter for the liquidator to investigate.
Mr Pearse Farrell of accounting firm and business consultants Farrell Grant Sparks has been appointed liquidator.
A committee of inspection was also set up to provide assistance to the liquidator. It comprises Mr Loftus from Revenue; Chambers of Commerce of Ireland chief executive Mr John Dunne; Mr Barry O'Halloran, an employee of the company; Mr David Stewart, a freelance journalist; and Mr Hyland as a shareholders' representative.
Mr Loftus also questioned why returns were made late and were understated, and added that it appeared that money owed to the Revenue was used to keep the company afloat when it was insolvent.
Mr Hyland said he had only become aware of this situation two days before closing the deal. Mr Hyland acquired Belenos and its parent Baal Securities for €250,000 in January. He has initiated proceedings against the vendors of Baal Securities for breach of warranties.
Other unsecured creditors in Belenos include: Dolmen Securities, which was engaged by Belanos in seeking a buyer for the company and is owed €114,276; Impress Data & Imaging, which is owed €43,022; An Post, which is owed €40,597; and Dublin Chamber of Commerce, which is owed €28,433. Former chief executive Mr John McGee is owed €19,046. The company has total debts of €1.29 million.
