Company decision leaves pilot students €5.5m out of pocket28/09/2012 - 16:25:29
A company, whose investment was hoped would save the future of Waterford Pilot Training College, has decided not to go ahead with the investment, the High Court heard today.
Bernard Dunleavy, counsel for Michael McAteer who had been appointed Examiner in a bid to save the college as a going concern, applied to Mr Justice Paul Butler to lift the protection of the court, discharge the examiner and order the winding up of the company.
He said the company was now hopelessly insolvent following the withdrawal on Thursday of the proposed investment.
The development means that 350 students , who are owed a total of almost €5.5m, will be left with nothing as the company has no funds to return fees of around €80,000 they each paid for a training course in the US.
Judge Butler appointed Mr McAteer as liquidator of the company.
The High Court had already granted the company a 30-day extension to the period of protection from its creditors in the hope that a survival plan could be put together by Mr McAteer.
Mr Dunleavy told the court that when any hope of survival disappeared in an Examinership it was incumbent on the Examiner to inform the court of the collapse at the earliest possible moment.
Judge Butler heard that the students would not even receive their legal costs from the Examinership or from the liquidation process that will now follow.
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