Good news for Cappoquin as co-op hatches new deal to save 130 jobs
Further 120 positions to be created with US approval for medical device and packaging firm's expansion
Published 17/11/2012 | 05:00
ABOUT 130 jobs will be saved and a further 120 jobs created around the country as Waterford-based Cappoquin Poultry is set to be saved and two existing companies plan to expand.
The Irish Independent has learned that Cappoquin Poultry is set to emerge from examinership on Wednesday, preserving 130 jobs at the poultry processor.
The plant will be bought out of examinership in a €900,000 rescue hatched by local suppliers group Cappoquin Poultry Co-Op, who will take ownership of the company, and lender Bank of Ireland.
There was further good news in Limerick, where Cook Medical won regulatory approval from US medical authorities yesterday for a Limerick-manufactured "stent" used to treat clogged leg arteries.
The US decision could mean another 100 jobs for Limerick, Bill Doherty, the head of the Limerick operation, told the Irish Independent.
Construction had already begun on a new research laboratory, which would enable the Limerick plant to develop future generations of this technology, he added.
In Co Waterford, creditors have approved a rescue plan for Cappoquin Poultry that will see a local poultry producers' co-operative buy the company out of examinership.
Judge George Birmingham appointed Michael McAteer of Grant Thornton to both Cappoquin Poultry and to 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.
Last night he confirmed that creditors had voted to sell the company for €650,000 to Cappoquin Poultry Co-Op.
The money will go to fully pay 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.
Under the plan, Bank of Ireland is to extend €250,000 in new loans to the business.
The scheme was approved by the required majority of a class of creditors, stipulated under examinership rules this week.
A confirmation hearing, where the High Court can approve the scheme, is set to take place on Wednesday.
Meanwhile, in Wicklow, packaging firm Macfarlane, whose clients include Tesco, said it was planning to close an existing facility in Dublin and relocate to its Wicklow premises in 2013.
The Scottish packaging firm plans to boost its workforce to 40 over the next year as it moves production to the larger, more modern plant in Wicklow.
Macfarlane employs about 20 people at the Dublin site. It said the factory in Wicklow was a better location and would be a base from which it could accelerate the development of its resealable labels business and expand its activities in Ireland.