Court appoints examiner to ferry service companies

A HIGH Court judge has agreed to appoint an examiner to the companies operating the Cork-Swansea ferry service, which believe they will make a profit next year having abandoned loss-making sailings and implemented other cost-saving measures.

Mr Justice Peter Kelly yesterday approved examinership for the companies at a hearing where no opposition to court protection was voiced by creditors.

Examiner Michael McAteer now has 100 days to finalise a survival scheme.

The judge said he was satisfied to grant court protection to Fastnet Line Ship Holdings Ltd (100 per cent owned by the West Cork Tourism Co-operative Society Ltd) and related companies operating the ferry service based at Ferry Terminal, Ringaskiddy, Co Cork.

The Munster region benefitted by about €18 million this year from a boost in tourist numbers connected with the ferry service while the companies’ freight service gives businesses based in the southwest a corridor from Cork to Britain and beyond, the court previously heard.

About 70 people, mainly crew members hired through a Polish agency, are employed by the companies. The Cork-Swansea ferry, the MV Julia, is in port until a new schedule of 200 sailings annually begins next April, to run to the end of September.

Ross Gorman, for the companies, had outlined that the Fastnet companies are insolvent with a deficit of some €10.3 million on a going concern basis, rising to about €13.2 million in a winding-up scenario. The companies said their difficulties were due to problems including start-up cost overruns and the decision to operate an all-year service in 2010 in line with recommendations of a firm of independent consultants in a “flawed” report commissioned by the Port of Cork. It became apparent during that first year the ferry was running at a significant loss outside the high season, the companies said. A new business model would involve 200 annual sailings, down from 280, between April and September only.

Earlier this year, the companies changed their business model to reduce sailings and staff numbers, increase marketing efforts and alter marketing strategy. Further investment was also obtained.