Ireland’s High Court has been asked for winding up orders for Cloughwater Plastics Ireland Limited by two creditors which claim they are owed €2.3 million (£2.07 million).
This is a joint venture between Netherlands-based Van Werven Group and Northern Ireland’s Cloughwater Enterprises Limited.
The two creditors are both part of Van Verven Group. They are Kunststof Recycling Van Werven BV, which says it is owed €1.86 million (£1.65 million) and Van Werven Plastic Recycling Holding BV that says it is owed €477,000 (£423,000).
In the court in Dublin, Lyndon MacCann SC representing the Dutch companies, said that the two businesses had lost confidence in Cloughwater Plastics and its managing director Shane Woods and claimed that the company had been insolvent for some time.
The counsel said to the court that his clients believe it is in the best interests of the company that the appointment of judicial provisional liquidators is made as soon as possible. He added that there are concerns over the manner in which the company has been run and alleged discrepancies in its books. He also noted that the company no longer appeared to have a licence to transfer and export its end products out of Ireland.
Additionally, the court heard that Irish packaging compliance body Repak is owed €562,000 (£498,000), but potentially this could increase by an additional €600,000 (£532,000).
Repak also informed the court it had lost confidence in Cloughwater Plastics managing director Shane Woods.
The company has now reached its maximum capacity permitted in its environmental permit and also requires additional investment to upgrade its facilities, or risk losing its insurance cover.
However, Mr Justice Brian O’Moore said he was not prepared to grand the orders sought on the basis that only two creditors were represented in court. He directed that the application be made on notice to the company and other interested parties including Repak and Ireland’s Revenue Commissioners.
Cloughwater Plastics Ireland is based in Dublin and processes mixed rigid plastics.
The case has now been adjourned until Friday.