A US businessman has given a commitment to meet the cashflow requirements of an Irish company which installs Internet kiosks, the High Court heard yesterday.
After being told of the commitments of the US investor, Mr Justice McCracken appointed Mr Jim Luby, of Dublin accountancy firm McStay Luby, as interim examiner to Circle Network (Europe) Ltd, the Enterprise Centre, East Wall Road, Dublin.
The petition was presented by Mr David Barniville, for Mr Donald Garlikov of Columbus, Ohio, who was stated to be a shareholder in the company which provides Internet access kiosks in Ireland and Britain.
The court was told the company initially committed itself to acquiring 1,000 kiosks. When it became apparent there would be an investment shortfall of approximately $6 million, it attempted to limit production but had to proceed with the acquisition of 750 kiosks at a cost of $4,000 each. This left the company with limited funds. The company experienced delays in the establishment of contracts with key multiple siteowners. It has deployed 190 kiosks and has 550 in stock.
The petition said anticipated losses for the first year of operation, which began on November 1999, were about £1 million with anticipated net profits in a five-year period of more than £5 million. Actual losses since November 1999 were about £2.2 million.
Mr Garlikov made a loan of $500,000 last July and was confident of the company's survival. He had given a commitment to meet its requirements during the examinership and for a period thereafter.