Newbridge Credit Union formally wound up by High Court

The High Court has made orders formally winding up Newbridge Credit Union on the petition of the Central Bank.

The credit union was taken over by Permanent TSB last month in a €53.9 million deal after a proposed merger with Naas Credit Union did not go ahead.

Luke Charleton of Ernst & Young was appointed special manager to Newbridge Credit Union by the High Court in January 2012 after the Central Bank sought that appointment due to its concerns about the credit union’s financial position.

Yesterday Mr Justice Peter Charleton said he had "no hesitation" in appointing chartered accountant Jim Luby of the firm McStayLuby as liquidator of the credit union and said it was in the public interest to do so.

There was no objection to the petition.

Paul Gallagher SC, for the Central Bank, said the assets and liabilities of the credit union had been transferred to PTSB following an application to the High Court on November 10th last.

InstabilityThat move had ensured all customers deposits had been saved and prevented any instability to the financial system, counsel said.

All that remained was the “rump” of Newbridge Credit Union, which consisted of a premises in Newbridge and some small outstanding liabilities, counsel added. The credit union was “clearly insolvent” with €19.3 million liabilities over assets.

The Central Bank now was of the opinion it was in the public interest that it be wound up, counsel said.

Lawyers for the directors of the credit union said liquidation and the appointment of a liquidator was an inevitable consequence given the transfer to PTSB.

Mr Justice Charleton adjourned the matter to the High Court examiner's list in February.