Companies that enter the SCARP do not automatically obtain protection from their creditors while it is underway, unlike the examinership process. Photograph: iStockA Co Monaghan-based marine biotech company has applied to the High Court seeking protection from its creditors while it attempts to finalise a rescue plan that would ensure its survival.
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.First-time buyers: How to get to know an area before deciding to buy
On Wednesday, Arthur Cunningham BL, instructed by solicitor Graham Kenny of Eversheds Sutherland, for the company, told Mr Justice Mark Sanfey that six creditors have threatened the firm with either legal or enforcement proceedings. To get such protection, counsel said, firms must make a court application, under the Companies Act, for orders preventing creditors from bringing proceedings over the debts during the rescue period.