Provisional liquidator appointed to Car Buyers' Guide owner; 22 jobs affected
By Ann O'Loughlin
A provisional liquidator has been appointed by the High Court to the company which owns and operates a website allowing people to locate and buy second hand cars.
At the High Court today, Mr Justice Tony O'Connor appointed insolvency practioner Anthony Weldon of Kieran Ryan and Company as provisional liquidator to Digital Motor Limited, with a registered address of Woodstown Village Centre, Knocklyon, Dublin 16 which owns and operates the Car Buyers Guide website www.cbg.ie and which employed 22 people.
The Judge said he was satisfied to make the appointment as the company was insolvent and clearly unable to pays its debts.
The appointment of the provisional liquidator was sought by a creditor of the company Bristol Mallory Ltd, which owns 100% of the share capital in Digital Motor Limited.
The court heard that as well as Bristol Mallory, three other parties are entitled to the beneficial ownership of the shares in Digital Motor Ltd.
Ross Gorman Bl for Bristol Mallory said it is owed €1.14m by Digital Motor Limited, which had been loss-making for some time.
Digital Motor Limited had been surviving on loans from Bristol Mallory, but the latter was no longer prepared to provide money to support the firm.
The company, which derived its income from advertising on the website had 22 employees, which counsel said have been made redundant as the company was unable to pay its wages.
Counsel said the creditor was seeking to have a liquidator appointed because there had been expressions of interest in acquiring the firm's assets
The expressions of interest raised a possibility that some of the employees could be taken on by prospective purchasers of the website, counsel said.
It was vital the company's main asset namely the website be continue to be operated by the liquidator, or the value of the asset would be diminished, counsel said.
The liquidator would handle the sale of the assets, and take steps to ensure that none of the company's assets are dissipated by creditors before that process is completed, counsel said.
Counsel said it was in the best interests of his client and other creditors that a liquidator be appointed to the company .
Mr Justice O'Connor after appointing Mr Weldon as provisional liquidator and granting him a number of powers, including the power to secure the firm's assets, adjourned the matter to January.
