Member Article

In the Matter of James McMenamin Ltd. (in Voluntary Liquidation), High Court, Laffoy J, 18 April 2005 Facts: In this case, a company in liquidation suddenly found funds that were previously unavailable, in an amount that would allow it to trade successfully again. Therefore, one of the contributories of the company sought to have the liquidation halted so that the company could resume trading as normal. The company’s sole asset was a 26-acre plot of land. The plot was un-saleable for 20 years, but the situation changed in 2004, and the property was valued at €,050,000. In addition, one of the shareholders agreed to invest €1,250,000 in the company to allow the liquidator to discharge the company’s liabilities and the liquidation expenses. These values, when combined, more than covered the outstanding liabilities of the company. Held: The court considered the position of the relevant parties: the creditors, the liquidator and the shareholders. Laffoy J was satisfied that all parties would benefit from this arrangement. Therefore, he ordered that the shareholder inject funds into the company. He then granted the company leave to re-enter the application after this had taken place, in order to proceed with the motion to halt the liquidation.