|
Fate Park Ltd trading as Sweeney Oil and a related company Castlebar
Oil Company Ltd, will be completely taken over by fuel company
Tedcastles in return for a €12m investment.
Fate Park, which is involved in oil distribution, employs 105 people
- 50 of which are drivers. It also has 16 depots, 65 trucks, two petrol
stations and 15% of the market share in the West of Ireland. Last
April, Sweeney Oil ran into cashflow and financial
problems.
While the business operations was
profitable , Sweeney had a number of other investments in key property
projects that proved to be a drain on the oil business.
Under
the Scheme of Arrangement put forward by examiner Billy O'Riordan of
PWC, secured creditor AIB, which is owed €20m, will receive €6.6m.
Another secured creditor, Nire Oil, will get €250,000 of a debt of
€5m. Unsecured creditors, including Esso which is owed €12.5m and
Topaz which is owed €4.2m, will get a fund of €935,000 to divide
between them, representing 5% of the total debt owed. Investor
designated creditors, will get a cash fund of €300,000, representing
47% of their debts, to divide between them.
Preferred creditors, including the Revenue Commissioners, will divide
€200,000 between them, which is 100% of their liability. The court
heard that under the scheme, the directors of the company, including
well-known businessman John Sweeney, will resign and be replaced by
representatives of the new owners. The scheme has also been approved by
the Competition Authority, due to the fact Tedcastles is taking over
the company. Counsel for the examiner, Rossa Fanning, said the scheme
contained proof that creditors would do better from the continuation of
the business than they would if it were wound up.
PetrolWorld 190809
|
