"The large number of customers who paid deposits for garden furniture, often bought online for later delivery, is an unusual feature of the examinership, and it's thought that identifying and verifying potentially thousands of individual claims may take some time yet. However, the Irish Independent understands the current estimate is that those customers are owed as much as €2.5m."
"In total, the debts of the business are understood to be around €18m, dramatically exceeding its assets. Creditors are understood to include Revenue - which is typically at the top of the queue for repayment when a business becomes insolvent - and trade creditors including suppliers are understood to account for the biggest share of money owned by the business."
"Unsecured creditors, including customers that have paid a deposit for goods not yet delivered, are typically well down the list for repayment in the event of insolvency. However, in the Rathwood case a rescue scheme may well look to prioritise fulfilling outstanding orders to support the long-term viability of the business."
"It is understood that multiple suitors have approached the court-appointed interim examiner after he advertised seeking expressions of interest at the end of April and set a deadline of May 10 for interested parties. The High Court is expected to be asked to confirm the for-now interim examinership today, pending an assessment from Mr Bermingham that the business has a realistic prospect of survival."
Rathwood, based just outside Tullow in County Carlow, continues trading under court-appointed interim examiner Padraic Bermingham of Strata Financial. Potential buyers have emerged after the examiner advertised for expressions of interest, with a May 10 deadline. A notable feature of the examinership is the large number of customers who paid deposits for garden furniture ordered online for later delivery. Those customers are estimated to be owed as much as €2.5m, and verifying potentially thousands of individual claims may take time. Total debts are estimated at around €18m, far exceeding assets. Creditors include Revenue and trade suppliers, while unsecured deposit customers are typically lower in repayment priority, though a rescue scheme may prioritize fulfilling outstanding orders to support long-term viability.
Read at Irish Independent
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