Interim examiner appointed to heating and plumbing supplier

The High Court has today appointed an interim examiner to a heating and plumbing supplier which employs 16 people.

Arcon Heating and Plumbing Suppliers Ltd sought the protection of the court after NIB appointed a receiver to the company late last week. 

Declan Murphy Bl for Arcon told the court the actions of the receiver, who has indicated the likelihood of redundancies at the company, would “profoundly damage the company’s prospects of surviving as a going concern”.

Chartered Accountant Mr Neill Hughes was appointed as interim examiner to Arcon Heating and Plumbing Suppliers Ltd, and related company Nearblue Limited, by Mr Justice Kevin Cross after being informed that an independent accountants report said that the company's have a reasonable prospect of survival if certain steps are taken. 

The Judge also made orders, which were granted on an ex-parte (one side only) basis, dismissing the bank-appointed receiver. The matter was adjourned and will return before the High Court later this month. 

Moving the petition on behalf of Arcon Mr Murphy said the firm is a supplier of products including boilers, renewable energy products and radiators to the building service sector. 

The company, located at Rialto in Dublin 8, got into cash flow difficulties due to the downturn in the construction and property sector, and more recently when National Irish Bank withdrew from an invoice finance arrangement it had operated with Arcon since 1999.

The bank then appointed a receiver over the company.

It was now insolvent and unable to pay its debts, counsel said, adding that if an agreed scheme of arrangement can be put in place by Mr Hughes Arcon was confident it could trade profitably in the future. 

Counsel said the receiver, who is due to meet with the company next Tuesday, had indicated the likelihood of redundancies at the firm.

Arcon believed that the receiver’s ongoing activities would “profoundly damage the companies business, reputation and standing.” 

It was, counsel submitted, in everyone’s best interests that the company be placed into examinership and the receiver be dismissed.

Counsel said that in a winding up situation the liabilities of both Arcon and its holding company Nearblue exceeded their assets by more than €2.1m. 

As going concerns the companies had an excess of liabilities over assets of approximately €700,000.

Counsel added that Arcon has been in business for 30 years and many of its’ employees have been with the firm for a long time. 

The firm's directors are Patrick Joseph Anthony Callaghan, Andrea Brennan and William Roche.