High Court extends ‘Sunday Business Post’ protection

The High Court has extended protection for the Sunday Business Post to the maximum period available to allow more time to finalise a survival scheme.

Mr Justice Peter Kelly expressed concern that the amount of information given in support of the application to extend protection to 100 days was "light on detail" and "rather bland".

Because he was told examiner Michael McAteer was confident of an investment in the newspaper's owner, Post Publications Ltd, once cost-saving measures were implemented, the judge said he would extend protection as sought.

Rossa Fanning, for the examiner, earlier told the judge there had been no objection from AIB and the Revenue to the extension.

While there was no response from printer Webprint Concepts, it had been indicated that it was not going to object either, counsel said. Mr McAteer had proposed €1.8 million in cost-saving measures, which involved negotiations with employees, landlord, printers and distributors and was expected to be in place by May 24th.

This would facilitate formal proposals from prospective investors, the court was told.

Cuts in wages
Asked by Mr Justice Kelly whether the cost savings meant a change in the number of voluntary redundancies required since the initial examinership, Mr Fanning said he was instructed the total number was nine and there would be further savings from cuts in wages for remaining staff.

When the judge complained about the amount of detail being provided, counsel said the examinership was at a sensitive stage and Mr McAteer was limited in what he could say.