Electronics firm to be wound up

An order was made by the High Court yesterday to wind up Munster Electronics

Ltd. A liquidator was appointed to the firm which had been in examinership and has premises near Listowel, Co Kerry. Mr Justice Shanley made the order after the court heard that a majority of the company's 72 employees had voted three times this month against a survival plan. He appointed Mr Ray Jackson of KPMG,

St Stephen's Green, Dublin as liquidator.

The court was previously told that a substantial British company was prepared to invest in a £4 million package for the company which started trading in 1977 and manufactures printed circuit boards.

An examiner, Mr Jason Sheehy, was appointed last February 17th, on the petition of directors Mr James Donovan, Mr Robert Todd, Mr Paul Kearney and Dr

John O'Flaherty.

In the petition, it was stated that Munster Electronics Ltd, ICC House,

Charlotte Quay, Limerick, operates from a premises in Clieveragh, Listowel, Co

Kerry.

Three of the directors of the company acquired it in 1993 from a German company, Atlas Elecktronics GmbH.

It was originally a subsidiary of another German company. The directors inherited debts of £1.3 million, which built up over the years. Of that amount, £138,000 was due to the Revenue.

The development of the company was set back in 1995 and 1996 by a major one-

off loss on an IBM contract. The directors said a significant investment was required to replace older plant and machinery. Yesterday, Mr John Breslin, counsel for the examiner, said the third party investor had failed to win agreement with the trade union on redundancies and new work practises proposed in a scheme of arrangement.

Mr Breslin said he regrettably had to ask the judge to wind up the company.

Mr Richard Keane, counsel for SIPTU, said the employees recognised the drastic consequences of voting down the survival plan. He said the union balloted members on the plan on three separate occasions this month. Each time it was voted down.

Mr Keane said there was clearly nothing more the union could do to facilitate the company's survival. He said a massive reduction in the employees' weekly wages was proposed and the workers decided to face the consequences.

Mr John Gordon SC, who represented four of the company's major creditors, proposed that Mr Jackson be appointed liquidator. He said one of the creditors he represented was owed more than £700,000 by the company. It was unopposed by the examiner, the company and the Revenue. Mr Justice Shanley said the scheme of arrangement was contingent on certain negotiations between the third party and the IDA and a certain revision of work practises by employees, which was probably a euphemism for a reduction in wages.

The employees had decided against accepting the proposed reduction in wages and he must refuse to confirm the scheme of arrangement and make an order for the winding up of the company and the appointment of Mr Jackson as liquidator.