A marine biotech company has sought High Court protection from its creditors while finalising a rescue plan.
As The Irish Times reports, the application was made by Bio Marine Ingredients Ireland Ltd, a company based in Castleblaney, Co Monaghan, employing eight staff.
The company, which has been majority-owned by Killybegs fishermen, began production of soluble and insoluble proteins and marine minerals in 2018. It reported last year that it had moved into nutraceuticals and infant health.
The newspaper reports that the firm got into difficulty due to factors including “higher than expected research and development costs, potential customers taking longer than expected to accept its products, and the underperformance of a contract with a Korean supplier due to the impact of Covid-19”.
The firm entered the Small Company Administrative Rescue Process (SCARP), which is designed to help insolvent smaller businesses to reorganise in a cost-effective way.
Unlike the examinership process, companies that enter the SCARP do not automatically obtain protection from their creditors while it is underway, the court heard.
The company has asked the court to put a temporary halt on all legal actions brought against it by its creditors.
The court heard that creditors, who between them claim they are owed more than €400,000 by the firm, include its landlord Americold Ltd, Bord Gáis Energy and various service providers.
The court heard that insolvency practitioner Declan de Lacy has been appointed as the company’s process adviser, and he has found that the company has a good prospect of survival. Sales volumes are expected to increase with several major new customers, and additional investment has been secured.
The matter is due to return before the High Court.
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