Nephin Whiskey investors write to ODCE

A member of the group of shareholders, Michael Walsh, said it wrote to the ODCE after the failure of the Davises to respond to its list of concerns.

“I can confirm that a group of investors have had absolutely no response whatsoever from Paul and Jude Davis, as the only remaining Directors of Nephin Whiskey Company Limited, to several correspondences and queries sent to them in recent months,” he said.

“We therefore felt that we had no option but to file a complaint with the ODCE in order to protect our interests.”

In response to the Sunday Independent, Jude Davis claimed all shareholders had been notified that as “proceedings have been initiated against the company, it is in the best interest of the company to allow this legal process to proceed uninterrupted to let the court determine the allegations made against the company based on the facts”.

Until the proceedings have been completed, Jude said Nephin would “unfortunately, decline to comment”.

The Business Post reported the founders of Nephin Whiskey had become embroiled in a boardroom dispute at the beginning of the year.

It reported that the row began when co-founder Mark Quick and the Davises fell out over the direction Nephin had taken. Later, Nephin’s annual general meeting in February was delayed.

Shareholder Walsh and Joe Queenan both resigned as directors earlier this year.

In January, it was reported Nephin faced a funding shortfall of nearly €1.8m. The warning came from one of the company’s principal financial backers, BES Management, an investment fund controlled by Davy stockbrokers and BDO.

Co-founder Quick has also filed legal proceedings against the Davises in the High Court. He is claiming shareholder oppression in the proceedings.

In April, an application was made by Quick’s legal team for various reliefs on foot of his claim. The Davises also submitted an affidavit setting out their response to his application.

Justice Miriam O’Regan told Quick to prepare a substantive responding affidavit and prepare an independent report setting out the value of Nephin.

The case is ongoing and could be in court again in November.

In May, Nephin Whiskey said in its most recent accounts that it expected to receive a total of €3.5m in funding. It had been approved €1.5m through the Immigrant Investor Programme, with the directors claiming to be in advanced discussions with private investors to raise a further €2m.

Last month, the Business Post also reported that Quick had taken a case against Nephin Whiskey in the Workplace Relations Commission. He told the newspaper that he was making a claim of unfair dismissal but declined to comment further on the matter.

Paul Davis said Nephin would defend itself fully in the WRC case.