High Court rejects attempt to wind up mining firm headed by Teeling

The High Court has rejected a bid to wind up a mining company headed by businessman John Teeling over claims the firm was insolvent.

Connemara Mining, whose executive chairman is Mr Teeling, insisted the company is solvent and able to pay its debts.

It had opposed a winding-up petition brought by UK mining finance company Trampus, the largest single shareholder in Connemara at 6.32 per cent.

Mr Teeling and another director, James Finn, who also opposed the winding up as creditors, own 7.78 per cent between them.

Trampus argued Connemara should be wound up because it is insolvent.

Debts
The company and the directors said no grounds had been demonstrated for winding up on a just and equitable basis and said it was able to pay its debts when they fall due. It also argued Trampus did not have the required legal standing to bring the petition as it was not a creditor.

Yesterday, Ms Justice Mary Laffoy ruled, under Irish law, Trampus did not have the required standing to advance the petition, particularly as it had not been established the company was unable to pay its debts or that it would be just and equitable to wind it up.

Connemara was set up in 2006 to exploit zinc and other mineral mining opportunities in Ireland. It has obtained licences for a number of locations in Ireland and one of its subsidiaries, Limerick Zinc, has attracted investment from a Canadian company, Teck, to help exploit zinc reserves covered by the licences.