Examiner to pig firm tells court of investors' interest

A number of parties have expressed an interest in investing in a major pig slaughtering and breeding company to which an examiner was appointed early last month, the High Court was told yesterday.

The examiner, accountant Mr Neil Hughes, was appointed to Macmine Castle Enterprises Ltd, of Macmine, Bree, near Enniscorthy, Co Wexford, on March 3rd.

Yesterday, Mr Hughes said that, in a report dated February 25th, an independent accountant was of the view that the company had a reasonable prospect of survival and was a going concern, subject to seven conditions.

The principal condition was the successful completion of negotiations to secure a re-financing package or an investment to support the company's future working capital expenditure requirements.

Mr Hughes said, following his appointment, he prepared a prospectus for potential investors.

Such an investor would be necessary for putting a scheme of arrangement to the company's creditors. Mr Hughes said that following advertisements, eight parties had expressed interest in respect of a proposed investment in the firm.

Of those, five were carrying out due diligence. He added that he was hopeful a number of those parties would be in a position to commit to an investment in the company, which would make it possible for a scheme of arrangement to be put before the creditors.

The due diligence being undertaken involves the parties inspecting the plant and the facilities of the company, preparing detailed profit-and-loss projections and cash-flow projections and in-depth discussions between the investors, directors and the examiner, of very many matters.

The process was extremely time consuming. The examiner had expended much time and considerable resources in dealing with the requests for information from the five interested parties who were carrying out the due diligence.

In addition, Mr Hughes added, he had committed resources in ensuring that the company was continuing to trade on a day-to-day basis, ensuring staff and operating costs were controlled in line with the company's ongoing cash flow.

On the application of the examiner, Mr Justice Peter Kelly extended the protection of the court, which had been due to expire on May 7th, to June 6th.

The judge extended the time for the examiner to report to the court to May 20th.