Skelligs Chocolate and the jobs of 25 workers at the Ring of Kerry factory have been saved through the intervention of examinership, the Circuit Civil Court has been told. Judge John O’Connor heard that Paddy McKillen junior’s business had secured new investment of €350,000 and it is understood McKillen has indirectly ploughed new finance into the company.
Graham Kenny, solicitor for examiner Joseph Walsh, told Judge O’Connor that a financial rescue scheme, moulded by Mr Walsh and proposed with the agreement of the company’s creditors, was being presented for the court’s approval. Judge O’Connor, following details of the rescue plan having been put to the court, approved a scheme of arrangement that folds new life into Seacláidí na Sceilge Teoranta, the company behind the Skelligs Chocolate business.
Mr Kenny, presenting Mr Walsh’s report outlining his rescue plans, told Judge O’Connor that a €246,000 investment by Isle of Man company , Vermilion Limited, would go to paying off agreed and renegotiated creditors’ debts. The solicitor told the court that the investment would, in particular, provide working capital for the company and also cover legal costs of the examinership.
Mr Kenny said the new investment would be made by way of equity rather than a loan and he believed this would have positive results for the future prospects of Seacláidí na Sceilge.He told Judge O’Connor, who approved Mr Walsh’s proposals on the basis they seemed satisfactory, that the company had traded successfully under the protection of the court throughout the examinership.
Vermilion Ltd is connected to the McKillen family and McKillen junior had earlier intimated to the court that he was prepared to be involved in the financial rescue of the company.
