A creditor of a tech company has asked the High Court to appoint a provisional liquidator to the troubled firm.
The creditor, Datech Ltd, wants the provisional liquidator appointed to Cork-based Altada Technology Solutions Ltd, a data management and artificial intelligence company led by husband and wife duo Allan Beechinor and Niamh Parker.
The application was adjourned on Friday by Mr Justice Brian O’Moore, who said he wanted Altada to be notified first. He said the case could come back next week.
Last month a receiver was appointed to Altada on behalf of a number of investors who had recently provided financing of around €500,000. The receiver has recently advertised the business for sale.
Datech took an assignment of €100,000 loans to Altada from a US businessman in 2020. Last March those loans went into default and Datech claims a provisional liquidator is required to preserve the interests of “older” creditors like Datech.
In a petition seeking the appointment Datech director Darrell Penny said it was his belief Altada was insolvent and the recent financing by investors represented the “creation of a security in favour of apparent creditors”.
He said the appointment of the receiver last month, in the context of the recent financing, may lead to a situation whereby “recent creditors might unlawfully obtain priority over other older and pre-existing creditors”.
The petition was presented to Mr Justice O’Moore while only the plaintiff was represented. Jarlath Ryan, for Datech, said his client was concerned the business would be sold and there would be no assets left for a winding up.
The judge said he was not prepared to appoint a provisional liquidator at this stage and was directing service of the proceedings on Altada. He also directed that the receiver and other creditors, including Revenue, be notified.
He did not want to downplay the serious concerns expressed by Datech and he was not gainsaying that a liquidator will be appointed. However, because of the “extreme nature” of an application made by a body other than Altada itself, he was aware of the fact that the company should be given a chance to meet it.