Receiver gives undertaking on Butler companies

THE receiver at Butler Engineering in Portarlington and two other companies gave an undertaking in the High Court yesterday not to dispose of any assets before next Monday, save in the ordinary course of business.

A petition for an examiner to be appointed to Butler Engineering Ltd (BE I), Butler Engineering International Ltd, Lea Road, Portarlington, and Data Inputs Ltd, Northumberland Road, Dublin, will be considered in the High Court next Monday.

Yesterday Mr Donal O'Donnell SC, for the petitioner, Sureweld International Ltd, Fonthill, Lucan, Co Dublin, said the petition for an examiner had been presented to the court last Monday, and the receiver, Mr Ray Jackson, was informed of the intention. Then, on the same day, the receiver had gone on television indicating he intended to sell the assets.

He said that when the petition was presented that was the start of the protection of the court. The effect of the protection at the commencement was to protect the rights of creditors and employees. The application for an examiner was fully supported by the directors of the company.

A section of the Companies Act stated that there should be no winding up of the company while under the court's protection and that the court's protection started on presentation. That meant the receiver could not act unless by court order.

Mr O'Donnell said if there was any doubt, an interim examiner could be appointed, but an order should be made that the receiver should cease to act.

Mr Michael Collins SC, for the receiver, said he would offer an undertaking that the receiver was not going to dispose of any assets before next Monday, save in the ordinary course of business. The receiver had never said he was going to sell by yesterday.

Mr Justice Keane said that this was obviously a difficult matter and he would adjourn it until today on the basis of the undertaking to last until then. The matter raised an important issue regarding the status of the receiver, the company and shareholders.