Court hears of Lawlor payment by Lark

A director of Lark Developments Ltd, a building company under the protection of a High Court-appointed examiner, has confirmed the company made a payment to Dublin West TD Mr Liam Lawlor, the High Court was told yesterday. No details of the payment were given.

Ms Grainne Clohessy, for the examiner, Mr John McStay, told Mr Justice McCracken that Mr Anthony Murray, a director of Lark, had said the payment was for proper commercial benefit and went through the company's books.

Ms Clohessy said the matter had arisen in newspaper reports.

Mr Lyndon MacCann, for Mr Murray, of Killeany House, Maynooth, said it was a properly made commercial payment that went through the company's books.

The payment was mentioned as Ms Clohessy was presenting a scheme of arrangement for Lark, with registered offices at Ardfield House, Lucan, Co Dublin, to the court for approval. The court was told the overwhelming majority of creditors of the company, including the Revenue Commissioners and more than 80 per cent of unsecured creditors who between them were owed €21.59 million, were in favour of the scheme.

Counsel and solicitors representing a number of other creditors told the judge that while they were not completely happy with the scheme, they were not opposing it.

In an affidavit read to the court, Mr William Flynn, a private investigator of Enfield, Co Meath, said he was representing Stephen Dolan Scaffolding and Mr Patrick Curran, two clients who were creditors of Lark and who were opposed to the scheme. Mr Flynn alleged the company was engaged in fraudulent trading and also alleged Mr McStay had placed duress on creditors to approve the scheme.

Mr MacCann, for the company, said the allegations of wrongdoing were without substance.

Ms Clohessy said Mr McStay denied the claims of placing creditors under duress and said the examiner had found no evidence to support the claims of fraudulent trading.

The judge approved the scheme,which comes into effect from February 25th. He said he had no doubt the ordinary creditors would be much better off under the scheme than if the company was wound up.

He said Mr Flynn's affidavit had made certain claims and the place to have put these was at the creditors' meeting. Allegations had been made at what were described as heated meetings but 80 per cent of ordinary creditors had voted to accept the scheme in the knowledge of the allegations.