TWO CREDITORS of Chartbusters, which operates 37 home entertainment stores employing 267 workers with debts of €20 million, are opposing the continuation of court protection for the company, the Commercial Court heard yesterday.
Mr Justice Peter Kelly was told Lombard Ireland and Winchurch Investments Ltd are opposed to having an examiner confirmed for the company, and had filed affidavits yesterday outlining their reasons. Other creditors, including the Revenue and ACC bank, adopted a neutral position.
Gary McCarthy, for the company and six related firms, including tanning and weight-loss outlets, said he needed time to reply to the affidavits.
The judge adjourned the case to Thursday.
Rossa Fanning, for Neil Hughes, interim examiner to the company, said an interim report from Mr Hughes did not dissent in any meaningful way from the opinion of an independent accountant that the company had a reasonable prospect of survival once certain conditions were met.
In reply to the judge, Mr Fanning agreed the interim report also shares the independent accountant’s view that some of the Chartbusters stores will have to be closed.
The judge said he would adjourn both the application for examinership and a winding up application brought by Winchurch to Thursday, and would extend court protection pending that hearing.
Bank of Scotland (Ireland), KBC Bank, Lombard Ireland and Friends First Finance Ltd are owed €12 million by Chartbusters, while landlords are owed €2 million.
Mr Hughes, of Hughes Blake Chartered Accountants, was appointed interim examiner earlier this month.
Chartbusters director Richard Murphy said an independent accountant believed the company and related firms would have a reasonable prospect of survival as a going concern with new investment, closure of underperforming stores, negotiations with landlords and acceptance of an appropriate scheme of arrangement by the creditors under the protection of the High Court.