Court approves survival plan for Galway food company
A SURVIVAL plan has been approved by the High Court for a Galway-based food company employing nine people.
Ms Justice Marie Baker approved the survival proposals for Castle Lane Food Company, based at Unit 9, Ballybrit Business Park. It was placed under court protection last April and an Examiner was appointed.
The judge said she would confirm the scheme of arrangement notwithstanding objections from the company's landlord, owed some €100,000 in rent arrears.
There had been issues with rent arrears almost from the outset of the company's tenancy, she noted. Under the scheme, the landlord will receive some €2,500 towards those arrears and rent payments due since the company secured protection last April would also be paid.
The landlord retains the right to refuse to renew the company's lease when that is due for renewal, the judge said.
In all the circumstances, including the fact the company employs five people full-time and four part-time, she would approve the scheme, she said.