THE €250,000 which Cork City FC received from Reading for its top striker David Mooney will form the central plank of the club’s recovery, the High Court was told yesterday when it confirmed Kieran McCarthy as examiner.
Mr Justice Garrett Sheehan was also told that three potential business sources had expressed genuine interest in investing in the club and that a fans’ group, Friends of the Rebel Army Society, had pledged to raise at least €5,000 a week throughout the period of examinership and thereafter.
Gary McCarthy, counsel for the examiner, told the court the money received for Mooney had been ringfenced towards a package to facilitate the formation of a scheme of arrangement with the club’s creditors.
He said there had been a very positive response since the appointment of Kieran McCarthy as interim examiner. A number of players and staff had to be let go and the fortnightly wages bill had been reduced from €91,000 to €71,000. Counsel said the remaining backroom staff had agreed to accept only 30 per cent of their wages last week and had deferred payment of the remainder pending the examiner’s efforts to ensure the club’s survival. He said the chief executive of the FAI had sent a letter of support for the examinership process.
Judge Sheehan said considerable work had been done in recent weeks. The judge said he would appoint Kieran McCarthy, of Hughes Blake, chartered accountants and business advisers, as examiner. “I am satisfied from what I have been told that the club has a reasonable prospect of survival and I will grant the continued protection of the court,” Judge Sheehan said.
He said the examiner had a duty to report back to the court within 35 days but he would extend this until October 7th to allow for further meetings with creditors and potential investors.
Emmet Malone: page 19