Saturday 24 March 2018

Extension to special management order for Kildare Credit Union

Tim Healy

THE Central Bank is seeking an extension to a High Court order under which a special manager was appointed to to a Kildare credit union last January amid serious concerns about its financial position.

The manager was appointed to Newbridge Credit Union (NCU) after the court heard draft financial statements for last year indicated it did not hold the reserves required under the Credit Union Act and because of considerable uncertainty about its true financial position.

The special management order (SMO), appointing the manager, was made with the agreement of the Minister for Finance and it was considered to be in the best interests of the depositors of NCU which has around 37,000 members.

Luke Charleton of Ernst & Young was appointed special manager and the court heard it was "business as usual" as he undertook a reorganisation of NCU.

Today, Paul Gallagher SC, for the Central Bank, was granted permission by High Court president, Mr Justice Nicholas Kearns, to bring an application tomorrow to extend the SMO until January next.

The judge also agreed to an application from Mr Gallagher that parts of certain documents to be filed in court should be confidential because it involved commercially sensitive information.

Last January, when the application for the SMO was made, the court heard the board of NCU had disputed the need to appoint a special manager.

In correspondence, it said it failed to see how there could be uncertainty about the credit union's financial position and no issues had been raised by its auditors.

It also had a business plan, the board said.

Business Newsletter

Read the leading stories from the world of Business.

Also in Business