Blog: Debt payment saves Dunnes from winding-up order

Michelle Russell | 21 December 2012

Irish retailer Dunnes may be breathing a sigh of relief as it enters the Christmas break, assured it will still be trading in the New Year, after a wind-up petition has been withdrawn.

The group was reportedly facing a possible winding up of the company over its alleged failure to honour a EUR21.6m (US$27.9m) bill for building works at a shopping centre in Kilkenny. Dunnes had been issued with the petition by insolvent construction group Holtglen in a case listed before the Commercial Court, The Irish Times reported last month.

The pressure, however, is now off with the petition having been withdrawn following payment in full of the debt.

According to the Irish Times at the weekend, Brian O'Moore SC, for Dunnes, said the court was aware of the reasons why the money was not paid and that those reasons were "genuinely held".

Holtglen had constructed a shopping centre in Kilkenny in which Dunnes agreed to be the anchor tenant. The centre was completed in 2009 but Holtglen later became insolvent and its loans were transferred to National Asset Management, a company of the National Asset Management Agency (NAMA).

It is understood NAMA wrote to Dunnes in October last year warning that unless it was paid the sum within seven days, Holtglen would proceed to publish a petition to wind up the retailer on grounds it is "unable to pay its debts and/or it is just and equitable that it be wound up".


BLOG

Nestle starts advertising push for Maggi in India

Maggi noodles are yet to return to shelves in India but Nestle has started to pave the way for the brand's comeback with a series of social media ads....

BLOG

just-food closed - Monday 31 August

just-food is downing tools for the public holiday in England and Wales on Monday 31 August. We'll be back at our desks on Tuesday 1 September....

BLOG

Heinz under fire in Israel - but label still says 'ketchup'

Heinz's flagship product has provoked the ire of a competitor in Israel, a story that has attracted headlines in the international mainstream media. But even after making a change to the labels, a bot...

just-food homepage



Forgot your password?