Limerick freesheet company forced out of premises and up to €1 million in debt
THE company that controlled the Limerick Independent newspaper owes up to €1 million to creditors it has emerged, after the newspaper was forced out of its office on O'Connell Street by the liquidator last week.
Its debts were previously reported to be in the region of €350,000, but it is now believed to be as high as a seven-figure sum, with substantial amounts owed to AIB and Bank of Scotland (Ireland). Sources confirmed the total amount owed could be as much as €1 million.
The Limerick Independent newspaper is believed to be changing its name to the Limerick People, but serious doubts have also been cast over its future.
It was confirmed last week that the Limerick Independent is no longer a member of ABC, the respected company which independently verifies and reports on media performance. ABC had previously sanctioned the newspaper for making exaggerated claims about the extent of its free distribution.
Documents lodged with the Companies Registration Office show that the new title was adopted on August 12 and is registered at 48 O'Connell Street.
However, just last week the liquidator made an order that this office be vacated. Brian McEnery, of Horwath Bastow Charleton, had given the occupants until lunchtime on Friday to move out, but the staff were seen on Wednesday afternoon moving their possessions out of the office into two white vans. They are now understood to be operating from an office on Shannon Street, where they were formerly located.
Despite High Court proceedings to wind up the Limerick Indepen-dent Newspapers Ltd (LIN) due to initial debts of at least €350,000, the actions of those involved in the company have outraged creditors.
"It's just unbelievable what they're doing. They are basically given the two fingers to the law. How can they be allowed to operate," queried one irate creditor, who contacted this newspaper.
The Limerick Independent is now under the auspices of Lenmoy Media Publications Ltd, which was registered on April 8 - seven working days after the petition to wind up LIN was lodged to the High Court.
Declan and Susan Moylan were registered as the directors of the new company, however have stepped down as directors with Declan Moylan's sister and brother, Barbara and Rory Moylan, being appointed at the end of May.
It is understood their resignation as directors may be due to High Court orders pending against the couple.
That hearing is listed for Tuesday, September 7, but may be adjourned until October.
At a previous hearing, Mr McEnery was granted permission to bring separate applications against the company's directors.
The court was told that an application under Section 160 of the Companies Act may be brought against Mr and Mrs Moylan.
If granted, they would be disqualified from acting as a director or managing a company for five years.
It is understood that Mr McEnery is seeking to have Declan Moylan examined under oath in the High Court, and is to make a report to the Director of Corporate Enforcement on the matter.
Meanwhile, the liquidation proceedings against LIN have been adjourned for review in July 2011.
A statement of affairs for the company has been submitted by the directors, after repeated requests by the court, however it is said to contain a "multitude of errors and omissions".
LIN was wound up in May of this year due to debts in excess of €350,000 at that time.
Tony Connolly, of the menswear store of the same name, is also taking High Court proceedings against Declan Moylan and Nidec Restaurants Ltd, based in the Crescent Shopping Centre in Dooradoyle.
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Tuesday 22 May 2012
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