Court approves Cappoquin rescue
Published 30/11/2012 | 05:00
THE High Court has approved a rescue scheme for Co Waterford-based Cappoquin Poultry.
The agreement sees local poultry producers co-operative Cappoquin Poultry Co-Op buy the company for €650,000 and take it out of examinership.
The court approved the deal earlier this week. It is effective from Monday.
Michael McAteer, of accountants Grant Thornton, was appointed to both Cappoquin Poultry and a related company, Cappoquin Poultry Holdings, in August after being informed the business had debts of €6m, including €3.9m owed to its largest unsecured creditor, Henry Good, a supplier of chicken feed.
Henry Good Ltd petitioned the court for Mr McAteer's appointment on a number of grounds, including that Cappoquin Poultry was insolvent and to prevent the chicken processor's assets from being stripped.
The examiner is understood to have received many approaches to buy the business.
The money will go to pay fully all preferred creditors, including any tax bills, plus debts owed to secured creditors.
Unsecured creditors will be paid just 2.5 cent in the euro.