The receiver to a Cork-based artificial intelligence firm that has entered liquidation has agreed to sell the company to tech entrepreneur Eoin Goulding.
The High Court was told on Wednesday that the 32 employees of Altada Technology Solutions Ltd have not been paid in the last five months.
Solicitor Graham Kenny, representing Altada, described the firm as a “melting ice cube” whose value was derived from its employees who could walk away if their claim for wages was not resolved quickly.
The tentative deal, selected over a higher competing bid, will be further discussed between the parties involved in Altada’s liquidation, the court heard.
Revenue debt
The liquidator and the Revenue Commissioners, which is owed more than €2 million, had raised objections during the hearing about the validity of the receiver’s appointment. However, following discussions between the parties, David Whelan, for the liquidator said it was agreed the parties would work together to achieve a sale of the assets before the end of the week.
The liquidator noted concerns about payment of staff and their concerns that a dispute between him and the receiver could delay their claims, said Mr Whelan. He will endeavour to deal quickly with their claims once a sale has closed, the court heard.
Mr Justice Brian Cregan noted receiver Nicholas O’Dwyer, a partner at Grant Thornton, has agreed not to conclude the sale before 4pm on Thursday to allow further talks, while the proceeds of sale will not be distributed before January 27th.
He made an order appointing John Healy, of Kirby Healy Chartered Accountants, as official liquidator of Altada.
Mr Healy assumed the role of provisional liquidator in December, on the application of creditor Datech Ltd, represented by barrister Jarlath Ryan.
In his report as provisional liquidator, Mr Healy said the company was insolvent and defaulting on its creditors for at least 12 months prior to his appointment and within months of exiting an examinership process that involved writing down debts and securing fresh investments.
The report, read in court, said Altada owed unsecured creditors in excess of €5.3 million and close to €637,000 in back pay to employees.
Loan agreement
Mr Healy also raised concerns about the validity of a €500,000 loan agreement last September and the consequent appointment of the receiver seven weeks later. Mr O’Dwyer was appointed as receiver to Altada in November on foot of an application by four creditors who loaned the €500,000.
The company was “heavily insolvent” when the charge was registered, said Mr Healy. The terms of the debenture required its repayment within eight months, along with a “premium” of an additional €500,000.
Mr Healy’s counsel, David Whelan, said there were concerns about the lawfulness of the loan which was obtained without the consent of certain shareholders and investors whose approval was required.
He told the court petitioner Datech had submitted a rival bid for Altada that was rejected by the receiver. Although it seemed to be higher than the bid by Mr Goulding’s company Cometgaze, Mr Whelan said the liquidator has not yet had full sight of the sale contract between the receiver and Cometgaze.
The Revenue Commissioners also had significant concerns about the loan and about payment of the receiver out of the company’s assets, its counsel, Arthur Cunningham, told the court.
The matter was adjourned until Monday morning, but Mr Justice Cregan gave permission to the parties to apply to court tomorrow if issues arise out of their ongoing discussions.
