asked the Minister for Transport and Power the result of the appointment of a receiver over Shannon Craft Hire (1960) Limited in relation to the guarantee given by him under the Tourist Traffic Acts in respect of a loan of £20,000 raised by that firm; what action has been taken in respect of the specific charge taken by him on the firm's fleet of cruisers; and whether the several private concerns to whom money is owing by the firm in question will be paid.
Ceisteanna—Questions. Oral Answers. - Shannon Craft Hire Limited.
5.
The loan guaranteed under the Tourist Traffic Acts was secured by a first charge on all the assets of the company. The claims of other creditors rank after this charge. The receiver appointed in the case has now disposed of the assets but I am informed that the proceeds will be insufficient to meet the liability of the State under the guarantee. In the circumstances, it is unlikely that there will be any funds to meet the claims of other creditors.
Could the Minister say by what amount the proceeds of the sale were deficient in meeting the State's liability?
The matter has not yet been entirely settled, but I understand that the amount realised will be something in the neighbourhood of £18,000.
As against £20,000? Is that right?
Yes.
Is the Minister aware that a number of private firms gave credit facilities to this concern because of the fact that it was understood that the State was there to subsidise the firm and to help to meet its liabilities? Is he further aware that the effect of a State loan here was to mislead several private firms into substantial losses and has he any remedy for this situation?
The Deputy is aware from his own private profession that debentures have to be registered in the usual way in the Companies Office. The bill of sale, held by the Minister, has to be registered at the High Court. Anybody desiring to do business with this company had available to him these documents and the knowledge of what would occur if the company became insolvent.
It is very unfortunate for these people.
I am afraid it takes place in other cases.