A TOY-MAKING FIRM that employs 41 people in Ireland has exited examinership following an agreement between its shareholders that will ensure the company’s survival.
Last month, Justice Caroline Costello appointed Neil Hughes as interim examiner to Yvolve Sports Limited, which makes the popular ‘Flicker’ scooter and other products.
The appointment was made after the court was told an examiner was required to protect an important contract the firm has with US retail giant Walmart.
A shareholder in the company, Cloverglade Limited, sought the protection of the court due to the bankruptcy of one of its major customers Toys R Us.
The US giant’s bankruptcy resulted in cash flow problems at the scooter maker, and a dispute between Yvolve’s Irish- and Taiwanese-based directors.
Justice Costello was due to give her decision on whether to confirm Hughes as the examiner.
Lawyers for a Taiwanese shareholder in Yvolve and trade creditors had previously asked the judge not to confirm Hughes as the examiner and argued that the company didn’t need to be in examinership.
Aillil O’Reily, BL for Sino Foreign Trading Company, which is now the majority shareholder of Yvolve, said that it had funds to recapitalise the company and save the jobs.
Marcus Dowling, Bl for several of the company’s trade creditors, said they supported the proposal and said they are prepared to support the firm in the future if a recapitalisation takes place, but not if it goes into examinership.
Ross Gorman, Bl for Cloverglade, asked the court to confirm Hughes as the examiner due to his client’s fear that the company would go into liquidation if the examinership was discontinued. His client did not accept the recapitalisation plan would succeed.
However, the judge’s ruling was postponed after the court was told the parties had entered into discussions.
When the case returned before the Judge today, the court was told that the petition to have the company placed in examinership was being withdrawn following an agreement between the firm’s Irish- and Taiwanese-based shareholders that will see the firm recapitalised.
The judge then adjourned the matter to later this week to allow issues, including the examiner’s fees for work carried out to date, to be resolved.