An application for the appointment of a liquidator to an Irish company, a subsidiary of one of Italy's biggest companies which is in "extraordinary administration", opened before the High Court yesterday.
The petition has been brought by Bank of America NA, which is owed some €3.9 million by Eurofood IFSC Ltd, Harbourmaster Place, IFSC, Dublin.
Eurofood is a wholly-owned subsidiary of Parmalat SPA, a major global food company incorporated in Italy, which is a subsidiary of Parmalat Finanziaria SPA. The Parmalat group is said to be heavily insolvent.
Eurofood was incorporated in November 1997. It operated as an agency treasury centre providing financing facilities to members of the Parmalat group of companies that are not resident in Ireland. It raised money by issuing loan notes to insurance companies. The notes were issued through Bank of America.
A number of insurance companies, which are owed some €150 million, are also supporting the petition. However, the winding up application is being resisted by Mr Enrico Bondi, who was appointed by the Italian courts on February 9th as special commissioner of Eurofood.
The hearing of the petition opened yesterday before Mr Justice Kelly and continues today.
In January, a provisional liquidator was appointed by the High Court to Eurofood, on the application of Bank of America. Eurofood is being inquired into by the Director of Corporate Enforcement, the court heard.
The provisional liquidator is Mr Pearse Farrell, accountant, of Farrell Grant Sparks.
Mr Wayne Robert Porritt, of Bank of America, in an affidavit, said Parmalat SPA had, on grounds of insolvency, applied on December 23rd to the Italian Minister of Productive Activities to be, and was, placed in extraordinary administration.
On December 27th, the Civil and Criminal Court of Parma, Italy, made a declaration that Parmalat SPA was insolvent. Mr Bondi was appointed extraordinary commissioner in respect of the companies.
On December 30th, Parmalat Finanziaria SPA also applied to be, and was, placed in extraordinary administration.
On February 9th, Mr Bondi was appointed special commissioner of Eurofood with no notice to the Bank or to Mr Farrell.
Mr Porritt said that as Eurofood was incorporated in this jurisdiction and had always been administered in this jurisdiction, it would seem more appropriate for the winding up of the company to take place here.
Mr Michael Collins SC, for Bank of America, told the judge yesterday that the Irish courts had appointed the provisional liquidator to Eurofood before an Italian court hearing last month and Eurofood should be wound up in this jurisdiction. Mr Farrell had notified Mr Bondi of his appointment last January.
In a judgment last month, a court in Parma effectively said that Eurofood was a division of Parmalat and any applications should be made to the Italian administrator.
It is understood that one of the Mr Farrell's concerns is that, if Eurofood is not wound up here, terminal loss relief of some €2.5 million could be in jeopardy.
