Protection of Elverys continues as court gets accountant’s report

A judge has continued High Court protection for Elverys Sports after receiving an independent accountant's report expressing the view the company, which employs 654 people in 56 stores across the country, has a reasonable prospect of survival.

Mr Justice Brian McGovern was also told yesterday the National Asset Management Agency (Nama) will continue supporting Staunton Sports, the company operating the Elverys stores, during the period of court protection when rival bids for the company will be assessed. The judge has fixed Tuesday next for the hearing of Nama's petition seeking to confirm examinership for the company.

Last Friday, Nama secured interim court protection and an interim examiner for the company despite not having the independent accountants’ report normally required for such applications.

Rossa Fanning, for Nama, said the matter was urgent arising from threats by suppliers to withdraw supplies and other issues and Nama had been unable to procure an IAR in the time available.

Mr Justice McGovern agreed to grant protection on Nama’s assurance that an IAR would be provided and returned the matter to yesterday when he was told the report was available.

Mr Fanning secured orders allowing the report to be provided in redacted form to ensure sensitive commercial information about the company would not be made public. On Friday the judge was told Nama was optimistic the company could survive, with rival bidders vying for the business.

The petition also outlined a series of communications between Nama and Staunton Sports and stated Nama had told the company that unless it received a satisfactory response to various matters by 10am on Friday, Nama was reserving all of its rights up to and including petitioning the court for an interim examiner.

Nama was ultimately informed just before 1pm on Friday the company would support the petition.

Nama is the company's largest secured creditor, owed some €23 million, after acquiring its AIB loans in 2010 and 2011.