AN INDEPENDENT accountant’s report into a Limerick road haulage company identified possible grounds for reckless trading arising from non-payment of Revenue liabilities over a number of years, a High Court judge noted yesterday.
Mr Justice Peter Kelly was referring to a report by chartered accountant Peter Russell who, when asked to examine the liquidation of Lynch Freight (Kilmallock) Ltd, said it was “immediately obvious” the company was insolvent and had been for three years.
Lynch Freight and a sister company, Kilmallock Transport Ltd, have total liabilities of more than €1.4 million. Lynch Freight owes about €466,000 to the Revenue while there is a disputed liability of €426,263 to the landlord of its offices at Park West, Dublin. The companies employ 36 staff.
Mr Justice Kelly said yesterday he would “reluctantly” grant a one week adjournment of a petition by the Revenue Commissioners to wind up Lynch Freight which, with Kilmallock Transport, operates a road haulage, logistics and transport business from Kilmallock, Co Limerick, and Park West.
The judge said he was reluctant to grant the adjournment, particularly given the information in the independent accountant’s report which raised “a lot of questions” in relation to the trading. However, as Revenue was agreeing to an adjournment and no other creditor was objecting, he would grant one final adjournment.
Earlier, counsel for the Revenue said it was agreeing to the adjournment on the basis of undertakings by the company. The Revenue is owed more than €466,000 for unpaid VAT, PAYE/PRSI and interest and issued its petition after the company failed to pay that sum under a demand issued last November.
The company had last month initiated proceedings seeking the protection of the court and appointment of an interim examiner but has withdrawn that application. The independent accountants’s report was prepared for that examinership application.
