The High Court has appointed an examiner to the Rudds bacon company in Co Offaly, which employs 25 people and has won awards for its products.
Mr Justice O'Higgins said it seemed clear this was a case where the petition for an appointment of an examiner, which was brought by the company's directors Prue and David Rudd, should be granted. He adjourned to today a separate application brought by a creditor, Purcell Refrigeration Limited, for the winding up of the company, trading address at Syngefield Industrial Estate, Birr, and registered offices at Fade Street, Dublin.
Yesterday, appointing Mr Neil Hughes as examiner, Mr Justice O'Higgins said the debts were substantial but, in view of a recent contract secured with Superquinn, there was good reason to hope that the company's current difficulties would be overcome with the assistance of the examiner.
The judge agreed there should be a three member committee made up of the three top unsecured creditors to assist, but not control, the examiner.
Objecting to the application for an examiner, counsel for Comet Foods, which is seeking €76,000 from Rudds, said they had supplied sausage making machinery which they want to recover.
O'Connor Meats, another creditor, had no objection to the appointment of an examiner. They are owed about €200,000. Counsel for O'Connors said Rudds was making an effort but his client did want a committee of creditors appointed to help the examiner.
Mr Michael Cush SC, for the directors of Rudds, told the court that a contract had only been concluded within the past week with Superquinn which had a potential worth of €6.5 million per year.
At a hearing last Friday, Mr Justice Kelly said that if the company was wound up, there would be a shortfall of about €2 million leaving virtually nothing for creditors. The court heard that the company's liabilities exceeds its assets by some €600,000. Counsel for AIB which is owed more than €600,000 told the hearing the bank was neutral in the matter of the appointment of an examiner.