Firm ordered not to reduce assets below €91,000

The High Court has ordered a Galway painting and decorating firm not to reduce its assets below €91,000.

The court was told that, among other claims, Western Decor Ltd had acted in a "devious and underhand manner by dishonouring cheques in respect of multiple creditors".

Yesterday, the High Court made an order restraining the company, of Ruxton Court, Dominick Street, Galway, from reducing its assets below €91,000. The order was sought by Stephen Foley, a painting contractor trading as Glas Peint, Sceilig Árd, Headford Road, Galway.

Ms Justice Mary Laffoy granted the order on the basis of an ex-parte (one side only) application by Mr Foley and returned it to early next month.

In seeking the order, Michael O'Connor, for Mr Foley, said that his client was subcontracted in February last by the defendant to do a job at apartments at CityWest in Dublin. The contract was worth some €90,000 but, to date, only €4,000 had been paid.

Difficulties arose over payments in May and his client's firm had ceased work, he said. Not all of the agreed works were carried out before they left the site, counsel added.

In an affidavit, Mr Foley said that he was seeking the order because the defendant and its directors had "acted in a devious and underhand manner" by issuing cheques to his company and other creditors which the bank would not honour.

To date, his small firm had received just €4,000 from the defendant, he said. On May 31st last, he was given a cheque by the defendant for some €4,800 which was not honoured by the bank. He became very concerned.

While trying to secure payment after the cheque was not honoured, Mr Foley said he found the defendant to be evasive. He had been promised that he would be paid, but to date he had only received €4,000.

Mr Foley said that other subcontractors were also owed money by the defendant.

A former employee of the defendant had told him that the company was going into liquidation.

Mr Foley said he believed that Western Decor was " trading in a manner designed to defeat the interest of creditors" and was seeking to continue to trade although it "does not seem in a position to do so".

The contract which he had entered into last February was, for his company, a large contract, Mr Foley said.