Animation firm's receiver seeks to make directors liable for €30m of debts

business
Animation Firm's Receiver Seeks To Make Directors Liable For €30M Of Debts Animation Firm's Receiver Seeks To Make Directors Liable For €30M Of Debts
The court has also been asked to make several declarations that the three directors knowingly carried on the business of the company in a reckless manner and with the intent to defraud the firm’s creditors
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High court reporters

The Commercial Court has reserved its decision on an application to make some of the directors of an Irish-registered international animation company personally made liable for company debts of €30 million.

Mr Justice Mark Sanfey has been asked to make various orders against some of the directors of DQ Entertainments Ireland Ltd (DQE), which he was told made payments in millions to other companies for assets that did not appear to exist.

Orders sought

The orders, which include an order winding up the firm, are being sought by the company’s receiver Mr Patrick Bance, who was appointed in October 2019.

Mr Bance, who is based in Singapore, and is represented was appointed by international investment company, QL Master Ltd.

He is seeking various orders, including one making DQ’s India-based directors Rashida Adenwala, of Sai Sagar Heights, Hyderabad, Tapaas Chakravarti, of Jubilee Hills, Hyderabad, and Sanjay Choudhary, of Sri Gayatri Elegant Sy, Vasavi Naar, Secunderabad personally liable for €30m of the firm’s debts.

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The court has also been asked to make several declarations that the three directors knowingly carried on the business of the company in a reckless manner and with the intent to defraud the firm’s creditors.

Other declarations sought include that the three their failure to keep adequate company records resulted in substantial uncertainty regarding the firm's assets and liabilities, misapplied the company's money, and are guilty of a breach of trust and duty in relation to the company. .

The plaintiff’s action before the High Court's big business division opened before Mr Justice Sanfey on Tuesday.

No appearance

However, there was no appearance by the respondents and the application proceeded before the judge on an uncontested basis.

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Following the conclusion of the plaintiff's submissions the judge said he was reserving his decision and hoped to be able to give his judgment shortly.

Had the case proceeded on a contested basis the hearing was expected to last several weeks.

The court also heard that the receiver has resolved proceedings against DQ’s two Irish-based directors Leo Condron, Killeely Beg, Kilcolgan, Co Galway and Dominic Poole, Furrymelia, West Barna in Co Galway.

The actions against those directors have been settled and the proceedings against the two Galway-based directors are to be struck out, with no order as to costs, the judge was informed.

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