The High Court has appointed an interim examiner to west of Ireland car dealership Kenny Galway, effectively replacing a receiver appointed by a fund to the firm earlier this week.
The firm, based on Tuam Road, Galway, employs 33 people and will reopen for business this Saturday, the court was told on Friday evening.
Ms Justice Marie Baker appointed Neil Hughes interim examiner after accepting, based on the report of an independent expert, the firm, while insolvent, has a reasonable prospect of survival once certain conditions, including procuring investment, are met.
She made further interim orders restraining a fund-appointed receiver taking any further steps in the receivership pending the matter returning to court on December 13th.
Ross Gorman BL, for the company, said the receiver, Stephen Tennant of Grant Thornton, was appointed by Finn Funding Investments DAC (Designated Activity Company) on Wednesday.
His client’s intention was to open for normal trading on Saturday and to reemploy its employees, counsel said.
Mr Tennant had informed the company he would take no further steps in the receivership if an interim examiner was appointed, counsel added.
Kenny Galway was founded in 1992 by Brian Kenny and holds franchises for Citroën, Volvo, Kia and Peugeot. In a statement on its website this week, Mr Kenny attributed the receivership to the transfer of property loans to Sankaty Advisers, a US-based affiliate of investment group Bain Capital. Sankaty purchased a portfolio of loans from Ulster Bank last year.