High Court blocks sale of ferry company

The owners of Inis Mor Ferries have been restrained by the High Court from selling the €2million company without the…

The owners of Inis Mor Ferries have been restrained by the High Court from selling the €2million company without the written approval of a group which claims it had already bought the company.

Mr Seamus Ruane, counsel for Galway businessman Mr James Clancy and Inis Mor fishermen Mr Tomas Faherty and Mr Mairtin Mullen, told Miss Justice Mary Laffoy his clients had bought the ferry company on July 8th last.

Subsequent to that Mr Padraic Conneely and Mr Tommy Flaherty, joint 20 per cent shareholders in Inis Mor Ferries with Mr Faherty, Mr Mullen and Mr Thomas Conneely, purported to have sold the company to Island Ferries Teoranta.

Mr Michael Bergin, manager of Inis Mor Ferries, told the court he had attended a meeting of Inis Mor shareholders on July 8th when it had been unanimously decided Inis Mor Ferries would be sold to James Clancy for €2million with six months to pay the purchase price.

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Relying on this contract Mr Clancy had invested in a car park and offices at Ros A Mhil.

Mr Bergin said that on August 16th Mr Clancy met Mr Padraic Conneely and Mr Tommy Flaherty who endeavoured to have Mr Clancy pay the €2million by close of business that day despite the six months payment terms in the contract.

He told the court Mr Clancy was not in a position to pay all of the money by that time but would be able to pay all if given sufficient opportunity to make financial arrangements and had been aware he had six months to do so from the July 8 deal.

Subsequently Mr Conneely and Mr Flaherty had met with representatives of Island Ferries Teoranta on August 20th last and purportedly sold Inis Mor Ferries to that company.

Mr Bergin said that as far as Mr Clancy, Mr Faherty and Mr Mullen were aware no meeting of Inis Mor Ferries had authorized the second sale and Mr Conneely and Mr Flaherty had acted without authority.

In addition such a purported sale had been made without regard to Mr Faherty and Mr Mullen's rights to purchase the shares of the company as set out in the Articles of Association of the Company.

Mr Ruane told Judge Laffoy that since midnight on August 20th employees of Island Ferries Teoranta entered Inis Mor's offices in Forster Street, Galway, and changed the locks.

The gardai had been called and investigation revealed the trespass had been  done with the permission of Mr Padraic Conneely.

Immediately afterwards the staff of Inis Mor Ferries had been dismissed with only a day's notice and without any redundancy payment.

The phone number of Inis Mor Ferries was now being answered by employees of Island Ferries Teoranta.

Judge Laffoy granted Mr Clancy, Mr Faherty and Mr Mullen a temporary injunction preventing the sale or transfer of Inis Mor Ferries to anyone without their written approval and pending their application for permanent restraint next Tuesday.