A Musgrave Group company is to seek the appointment of an examiner to two companies operating Lanney's Supervalu in Ardee, Co Louth, the Commercial Court has heard.
The application has come from Coralfin Ltd which says it is a secured creditor, of some €15.6 million, in one of the companies, Escadia Ltd, whose debts are guaranteed by the second company, Belraine Ltd. Escadia is the sole shareholder in Belraine whose directors are Margaret and David Lanney, of Nobber, Co Meath.
Coralfin says it took over loans originally made by Anglo-Irish Bank to Escadia and to the Ardee Co-ownership Group.
It seeks court protection until an independent expert's report into the future of Escadia and Belraine is prepared.
Examiner petition
The petition to appoint an examiner came before Mr Justice Denis McDonald who on Monday adjourned the matter to the new year after hearing the two companies wanted to oppose the petition.
John O'Donnell SC, for the companies, said his clients had decided to oppose it after efforts at negotiation between the parties "did not work out" last Friday.
Counsel said it was not a matter which required urgent attention as it was an internal dispute with one company "putting a gun to the head of a sister company". It was not like many examinerships where a bank is trying to pull the rug out and there would be no prejudice in adjourning the matter, he said.
He also suggested that as there had been negotiations, there should be mediation.
John Lavelle BL, for Coralfin, said he was seeking a hearing of the petition this week but as this could not be accommodated by the court, he wanted as short an adjournment as possible.
Graham Kenny, solicitor for the Ardee Co-ownership Group, a group of private investors who acquired the Supervalu property, said the client was effectively the landlord of the premises. The difficulty he was faced with was that the cash flows of the business took no account of costs and expenses in circumstances where his clients are elderly investors, two of whom have recently passed away, he said.
Mr Kenny was neutral in relation to the examinership petition. Revenue, the court heard, wanted time to consider the application.
The judge gave directions for exchange of documentation and said the case can come back in January.
