Creditors to lose €5.56m over Kiely retail company collapse
Proposals by the administrators for the collapsed Orla Kiely fashion retail empire that will leave unsecured creditors £5m (€5.56m) out of pocket have been approved.
In new documents lodged with Companies House in the UK, administrators Chris Newell and Simon Bonney confirm that their proposals have been approved.
The fashion retail company - co-owned by Ms Kiely and her husband, Dermott Rowan went out of business in September - with debts of more than £7.25m.
The administrators' proposals were circulated to creditors on November 15th last and were deemed to be approved on November 27th.
The administrators made their proposals after finding that there was a deficiency of £7.5m in the business.
In separate documentation lodged by Mr Rowan with Companies House indicates that the couple's own financial exposure as unsecured creditors could be high as £2m.
The two had loaned £1m in directors' loans to the business while the Statement of Affairs lodged by Mr Rowan on behalf of the business states that an additional £1.1m was owed by the business to related parties of the firm.
In addition, trade and expense creditors are not to receive any of the £2m owed to them by the business.
The business's largest creditor, Metro Bank plc is owed £2.2m by the company through fixed and floating charges and the administrators say that the dividend to be paid to the secured creditor on its fixed charge is "to be confirmed".