The High Court had last July appointed provisional liquidators to St Mary’s Centre (Telford) which operates facilities on a campus beside St Vincent’s Hospital on Merrion Road in Dublin.
The application to wind up the facility, which is owned by the Sisters of Chairty order of Nuns, was brought on grounds it would be unable to meet redundancy payments of €950,000 arising from the liquidation.
The firm also cited regulatory difficulties and an inability to comply with HIQA recommendations to modernise its facilities as a reason why it is insolvent.
When the matter returned before the court on Tuesday lawyers acting for a group of employees, former employees, residents and their families have asked the High Court to consider putting the company into examinership.
Mr Justice Mark Sanfey, who said that the court's priority is the health and well-being of the residents, fixed a hearing date for the examinership application to a date later this month.
Application
The application will be heard in the presence of all interested parties and will travel with the earlier application to confirm the liquidator's appointment, the Judge added.
John Kennedy SC, instructed by solicitor Gary Daly, for the group said that an Independent Expert's Report had stated that the company could survive as a going concern if certain steps were taken.
These include the appointment of an examiner to "test the waters to see if an investor can be found to operate the facility," counsel said.
Counsel said the facility, which has been in being for 150 years, had always made a profit, and had no debts.
Counsel said many of the residents at the disability centre are vulnerable, deemed legally blind, and have other disabilities. Some of those residents have been there for 60 years, counsel added.
Counsel said the examinership application could not have been brought any sooner due to the difficulty in taking instructions from some of the elderly and impaired residents.
The application for examinership was strongly opposed by both the company, represented by Rossa Fanning SC, and Ross Gorman Bl for the provisional liquidators.
The court heard that as well as the licencing issues with HIQA, insurance coverage would cease at the end of the month and senior management had all resigned some time ago.
Company directors
The company directors, who were all volunteers, were not prepared to get involved in the company, the court also heard.
Mr Fanning said that the examiner application was "misconceived" and it was "unrealistic" that the entity could be saved.
While the group was entitled to seek to put the company in examinership, the fact was the provisional liquidators had been in place for almost seven weeks.
Mr Gorman said that many of the residents have been relocated to other facilities. He said that just four residents, out of a maximum capacity of 50 remain in the nursing home.
Eighteen out of the 25 residents in the disability centre remain, counsel added.
The examiner application was not opposed by either the HSE, represented by Conor Dignam SC nor HIQA represented by Brian Gageby Bl.
Both counsels said their client's main focus in any proceedings regarding the company was the resident's welfare.
Mr Dignam said the HSE remains committed to provide the facility with the same level of funding it always has.
In adjourning the matter Mr Justice Sanfey said he was satisfied to put a stay on certain powers previously granted to the provisional liquidators including the power to sell the firm's assets or its leasehold over the property.
He also encouraged the parties to engage in informal out of court talks to see if the parties can try and reach some common ground before the case returns before the court.
