Wind farm developer wins order preventing wind-up petition

Dispute concerns storage of 33 large cable drums at quarrying firm’s site

Derrysallagh Windfarm Ltd was entitled to an interim injunction restraining Hillstreet Quarries Ltd presenting or advertising a petition seeking to have Derrysallagh wound up over an alleged debt of €80,000. Photograph: iStock

Derrysallagh Windfarm Ltd was entitled to an interim injunction restraining Hillstreet Quarries Ltd presenting or advertising a petition seeking to have Derrysallagh wound up over an alleged debt of €80,000. Photograph: iStock

 

A wind farm developer has secured a temporary High Court order preventing a quarrying company bringing a petition to have it wound up over what a judge was told is a disputed debt.

Ms Justice Caroline Costello said Derrysallagh Windfarm Ltd was entitled to an interim injunction restraining Hillstreet Quarries Ltd presenting or advertising a petition seeking to have Derrysallagh wound up over an alleged debt of €80,000.

Patrick Leonard SC, with Fred Gilligan BL, for the company, said it is the developer of a wind farm at Glen, Knockroe, Derrysallagh and Rover in Co Sligo.

The lands on which it is developing the centre are leased from Hillstreet Quarries Ltd, he said.

The dispute arose over the storage of 33 large cable drums worth €500,000, to be used for the wind farm, at Hillstreet’s site between February and November 2017.

When a contractor hired by Derrysallagh to relocate the cable tried to move the drums, the defendant sent Derrysallagh an invoice seeking payment for storage.

Counsel said Derrysallagh told Hillstreet any issue concerning the storage of the cable was between Hillstreet and the civil contractor hired by Derrysallagh to carry out works on the wind farm.

Examinership

That contractor, which has since gone into examinership, had responsibility for the cable on the site, counsel said.

Derrysallagh does not owe the defendant money for the storage of the cable.

Following correspondence, Hillstreet brought a petition seeking to wind up Derrysallagh which, counsel said, would have a very serious effect and was an improper attempt to get money from Derrysallagh.

Hillstreet and companies related to Derrysallagh have been involved in other disputes before the courts, he added.

Granting the ex parte application for an injunction, the judge said Derrysallagh was entitled to the orders sought. Winding up petitions should not be used as a form of debt collection and this debt is clearly disputed, she said.

Evidence had been put before the court in relation to Derrysallagh’s ability to pay its debts and she also noted its claim of the catastrophic effect the issuing of a petition would have, the judge added.

The matter has been adjourned for a week.