The High Court yesterday granted an application by Guinness & Mahon bank for the appointment of a liquidator to a freight haulage company said to be "grossly insolvent" with debts of more than £1 million.

Mr Alexander Owens, for the bank, said there was prima facie evidence that Krisfield Limited, formerly with a registered office at Lissenhall, Swords, Co Dublin, with a present address at Fitzwilliam Square, Dublin, was engaged in fraudulent trading. He said the business being carried on by Krisfield was not freight haulage but was the business of Mr Thomas Delaney Junior, a certified accountant. The affairs of the company were "inextricably linked" with those of Mr Delaney.

Guinness & Mahon obtained judgment for £1.8 million against Thomas Delaney Junior in November last. Over half of that amount related to a guarantee liability of Mr Delaney Junior for Krisfield. An application was made to set aside the judgment and the matter was eventually settled. Mr Owens said the money was still outstanding.

Mr Owens said Krisfield owed more than £700,000 to Guinness & Mahon, which was by far its largest creditor, and a substantial debt to the Revenue. He said there were a lot of "dubious creditors" in that they were companies owned and controlled by Thomas Delaney Junior. Mr Brian O'Moore, counsel for Mr Delaney Junior, said his client had no objection to a court appointed liquidator but did object to the appointment to that post of Mr William O' Riordan, of Coopers & Lybrand.