'Irish Post' had debts of €2.3m when it collapsed

The London-based Irish Post newspaper had debts of at least €2.3 million when it collapsed in August last year.

A liquidator’s report, arising out of the newspaper’s closure, revealed that unsecured creditors submitted claims of £1.86 million (€2.3 million). Most are likely to get approximately 6p in the pound as the total amount of cash available is just £110,617.

The Irish Post was owned by Thomas Crosbie Holdings the owners of the Irish Examiner and Sunday Business Post.

The company paid £1.7 million for the newspaper when it bought it from Jefferson Smurfit in 2003.

By contrast the sale of the title, the only valuable asset the newspaper had, realised just £51,023.40 in a sealed bid auction which was held in September 2011.

The liquidators had hoped in their statement of affairs to get £150,000 (€185,000) for the title.

When it closed suddenly in August 2011, the Irish Post had just £3,056.77 cash at bank. Cash from trade debtors realised £88,322.67 .

The paper was bought by the UK-based Irish businessman Elgin Loane who publishes Loot and other titles.

The paper, founded in 1970 and describes as the voice of the Irish in Britain, was re-launched a year ago. Its closure caused consternation in the Irish community in Britain and a successful campaign was started to relaunch the newspaper.