High Court appoints Bloxham liquidator25/06/2012 - 18:48:06
The High Court has confirmed the appointment of a liquidator to stockbrokers Bloxham.
Last month partners of the company, which was ordered to cease trading by the Central Bank after it was revealed the company was undercapitalised, applied to have the firm wound up as they saw "no prospect of an improvement in Bloxham's trading position."
Its largest creditors include NIB bank, who are owed €8.5m and the revenue commissioners who are owed €2.3m. The High Court then appointed Mr Kieran Wallace of the firm KPMG as provisional liquidator
Today Ms Justice Mary Laffoy said she was satisfied to confirm Mr Wallace as both liquidator and administrator to Bloxham after being informed that the company was insolvent, unable to pay its debts and that its liabilities exceeded its assets by €13.9m.
The Judge adjourned the matter to a date in July. The court heard that Bloxham's major creditors and the Central Bank were adopting a neutral position in regards to the petition to have the firm wound up.
The stock broking firm, holds membership of both the Irish and the London stock exchanges. It is based in Dublin's International Financial services Centre, offices in Cork, and Limerick and had more than 17,000 clients.
In addition Bloxham has a 83% interest in London based Sonas Partners LLP, which trades on fixed income securities in the UK.
Bernard Dunleavy Bl for Bloxham, which is a limited partnership, said the company got into difficulties after it discovered that regulatory capital had been overstated by €5m. It was obliged to hold regulatory capital €5.6m.
Bloxham's partners unanimously agreed following a meeting that the company should be wound up, and that a liquidator be appointed.
Counsel said that the company got into difficulties after it discovered that regulatory capital had been overstated by €5m. It was obliged to hold regulatory capital €5.6m.
It had recorded a tax liability of €1.3m as an asset and not a liability while a pre-payment of €1m to revenue in April 2011 and repayments of loans to directors of €1.7m were never recorded as having being paid out.
After learning this, counsel said the company informed the central bank of its position which then ordered Bloxham to cease trading immediately It's membership of the Irish Stock Exchange was suspended last Monday.
As a result, and the fact significant claims are likely to be made against Bloxham by various creditors, counsel said the partner agreed that the company should be wound up and a liquidator appointed to protect the assets.
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