More than 130 jobs at risk at Tipperary’s Suir Pharma
High Court has appointed a provisional liquidator to pharmaceutical manufacturing company
Tipperary based Suir Pharma has gone into liquidation as its parent company Saneca was not willing to fund the company.
More than 130 jobs are at risk following the appointment by the High Court of a provisional liquidator to a Co Tipperary based pharmaceutical manufacturing company.
Suir Pharma Ireland Ltd, which is located at Waterford Road in Clonmel, and has been making generic medicines for approximately 40 years in the town, is insolvent and is to be wound up.
At the High Court on Tuesday the company cited losses of € 4.9 million during the 15 months before March 2015, and a large drop in sales in the US market late last year, for its difficulties. It projects further losses in both 2016 and 2017.
Its parent company, Saneca, was not willing to fund the company and it was left with no option other than to apply to the court for the appointment of a provisional liquidator.
Mr Justice Michael Twomey said he was satisfied to appoint insolvency practitioner Michael McAteer of Grant Thornton as provisional liquidator of the company.
The court granted Mr McAteer a number of powers, including a power to continue to allow the company trade.
Barrister Declan Murphy Bl, for the company, said the appointment of Mr McAteer would secure and help realise the best value of the companies’ assets, including its stock.
Mr McAteer would also accelerate the process of locating potential buyers for the company’s site in Clonmel, counsel added. It was in the best interests of the company and its creditors that a liquidator be appointed.
Counsel said that as well as the drop in sales to the US, the company also encountered a quality issue with an ingredient sourced from China used in one of its products.
This had prevented the company from making the product for some months resulting in a loss of revenue.
The company, which has 134 employees, has had several owners during its existence.
Last year it was sold to Slovakian group Saneca Pharmaceuticals by Munich restructuring company Mutares for an undisclosed amount.
After approving Mr McAteer’s appointment, the Judge adjourned the matter to June 13th.