Receiver not satisfied with fuel distributor’s promise to open books

The operator of a fuel distributor has undertaken to provide books and records to a receiver who has taken over the business arising from a debt to a bank, the Commercial Court has heard.

Receiver Kieran Wallace is still not satisfied that Michael Curran, a director of XL Fuels Group, Oldcastle Co Meath, is fully co-operating and wants to cross examine him in court later this month, it was stated.

Mr Wallace was appointed receiver over the business, which the court heard has a turnover of €28 million, by Bank of Ireland arising out of a €2.26 million debt to the bank.

The court was told the receiver is also prepared to discuss with another defendant in the case, the company's accountant, Edmond Cahill, of Kells Business Park, Co Meath, the terms on which it may not be necessary for him to participate in the proceedings later this month.

This was said after counsel for Mr Cahill said the accountant has no books and records of the business.

Gary McCarthy SC, representing both Mr Curran and Mr Cahill, said the accountant, as a professional, was in a difficult position.

The allegations made in this case were very serious and there was no basis for allegations against Mr Cahill as they related to issues, including the delivery up of assets of the business, which had nothing to do with him.

Counsel asked that Mr Cahill be let out of the proceedings.

A similar request is being made by Mr Curran’s 80-year-old mother, Maureen, also a director of XL but whom the court was told has no role in the running of the business.

Rossa Fanning, for the receiver, said this was a business turning over €28 million and Mrs Curran's side was saying she has no knowledge of this.

Imprisonment allegation

Mr Fanning outlined how his side was prepared to discuss the matter of letting Mrs Curran out of the case when a statement of her affairs has been provided, and subject to a separate application next week by Bank of Ireland seeking judgment against her for €1 million. The bank is also to seek judgment against her son Michael for €2.2 million.

Earlier, Mr Fanning said his side was not satisfied with the level of co-operation offered by Mr Curran as part of his intended undertaking to the court. The receiver was getting two or three versions in relation to company property and having to deal with “shifting positions” in relation to Mr Curran, counsel said.

When a summons server turned up to serve notice of next week’s judgment proceedings, Mr Curran imprisoned him for 30 minutes, counsel said. While Mr McCarthy was not acting for Mr Curran in relation to the judgement proceedings, this had to be considered in the context of the claim he was co-operating with the receiver, counsel said.

Mr McCarthy called on Mr Fanning to withdraw the allegation of imprisonment of the summons server, saying his side had no notice of that claim and was not in a position to respond to it. Mr Curran is prepared to meet those allegations in the proper forum, counsel said.

Mr McCarthy also disputed Mr Curran had not co-operated in relation to his undertaking to furnish books and records.

Mr Justice McGovern gave leave to Mr Fanning to apply to cross-examine Mr Curran the week after next.