One of Ireland's largest poultry producers, which has more than 200 employees, has been placed in interim examinership by the High Court.
The High Court was told that a statement of affairs of Michael D O'Connor, Sons & Company Ltd, trading as Cappoquin Chickens, shows a deficit of €806,000 on a going concern basis and a deficit of €7m on a winding up basis.
In its petition to the court the company blames factors such as the increase of the cost of foodstuffs, low cost imports from South America and Asia and the 2006 outbreak of Avian flu in Europe for its gradually deteriorating finances. The company blames avian flu for the fall in turnover at the company to €26m in 2006 from €29m in 2005.
The company is considered to have a reasonable prospect of survival provided certain conditions are met, Mrs Justice Mary Finlay-Geoghegan was told.
