Provisional liquidator appointed to the operators of a private third level college
THE High Court has appointed a provisional liquidator to the operators of a private third level college.
The Carlyle Institute was a Dublin city centre based college, offering English Language and business courses to mainly non EU students, which ceased operations earlier this month.
Mr Justice Paul Gilligan appointed insolvency practitioner Declan de Lacy of PKF O'Connor Leddy & Holmes as provisional liquidator to the company running college, Carlyle Institute Ltd.
The judge made the appointment, on an ex parte (one side only represented) basis, after being informed many of the college's former students have concerns about the operation of the company.
While a creditor's meeting of the company is scheduled for Friday (April 24), the court heard the students did not want a person nominated by the company as liquidator.
One of the students Ching-Hsiu Huang, with an address in Killiney, Co Dublin, petitioned the court for Mr De Lacy's appointment.
She is one of 200 students who paid fees to the college.
In an affidavit, she said she is owed €1,500 for fees paid to the company.
Her application was supported by other students, who are owed €237,000, and by the Irish Council of International Students. (ICOS)
The students had enrolled and paid for courses that either did not start or had not been completed at the time of the closure.
Her lawyers told the court they wanted Mr de Lacy appointed to secure the company assets and to fully investigate its affairs. The students had concerns about the creditors meeting.
David Moore an officer of ICOS, in an affidavit, said in the circumstances it was impossible for ICOS to have confidence in the potential outcome of any ballot of creditors in relation to selection of a liquidator.
Student creditors of the company had signed what they believed were refund applications but were in fact proxy forms which could be used by the directors when it came to the creditors ballot for who is elected as the liquidator.
Other matters of concern were that the college continued to accept payments from prospective students in the period just before it ceased to trade.
It had also been considering transferring €60,000 from its assets to another college that might assume responsibility for the provision of courses the Carlyle Institute had undertaken to provide.
The case comes back before the court later this month.