The High Court has appointed an interim examiner to an award winning Co Tipperary based food manufacturing firm that employs 18 people.
McEvoy Family Foods produces fresh soups, sauces and garlic breads for customers including Supervalu and Lidl.
It got into financial difficulties due to factors including high start up costs, lack of bank funding, and bad debts.
The firm's managing director is Gary McEvoy, whose wife Jane was earlier this year a contestant on the UK version of the popular television show "the Apprentice". Jane McEvoy the court heard works for the company.
The Court also heard the firm's directors believe it has "a viable future" and are confident of bringing in new investment ensuring the company's survival and preserve the jobs.
Today at the High Court Mr Justice Garrett Sheehan appointed Mr Neil Hughes as interim examiner to the company after being told that while the company is insolvent and unable to pay its debts as they fall due.
The Judge said he was satisfied to appoint Mr Hughes as an independent accountant's report presented to the court said the firm has a reasonable prospect of survival should a number of conditions be met.
These conditions include securing new investment in order to pay a dividend to the firm's creditors. Its main creditors include companies that supply McEvoy's with produce and packaging.
Mr Hughes now has up to 100 days to come up with a scheme of arrangement with the firm's creditors, and subject to approval from the High Court, that will ensure the company can continue to trade.
Today Ross Gorman Bl for the company, who petitioned the court for Mr Hughes's appointment, said a number of parties have expressed an interest in investing in the firm.
Counsel said the firm sought the protection of the court from its creditors because of higher than expected start up costs, and long delays in contract start dates.
The costs arose from the company having to relocate to its current location in Clonmel in order to bring it up to the high standards required by its customers.
The acquisition of extra equipment also added to its costs. Counsel said that the firm's bankers were unable to offer finances its required resulting in it obtaining alternate funding at a higher cost. The company also had bad debts of approximately €160,000.
It was in the interests of all the parties that an examiner be appointed as the the deficit of liabilities over assets in the event of the company being wound up was €1.1m compared to a deficit of €698,000 on a going concern basis.
Counsel said the company was set up in 2009 and is located at Carrigeen Business Park, Clonmel, Co Tipperary. Its directors are Mr Gary McEvoy, Webbsborough Ballyfoyle, Co Kilkenny and his aunt Noreen McBride of Rossmore Grove Templeogue Dublin.
Counsel said that Mr McEvoy had worked as chef at a number of high profile and Michelin star restaurants before moving into food manufacturing. Counsel said that since being established the company has been successful and "has won a number of awards for its products."
The firm produces a number of own brand products such as soups, garlic breads and sauces for Lidl Ireland and Musgraves owners of the SuperValu chain of supermarkets. Lidl, counsel said, have agreed in principle to launching the firms products in Lidl's UK stores by the end of the year.
The company also has developed its own range of baby food products. However due to its financial difficulties it had to pull back from discussions with another large retailer.
After confirming Mr Hughes as interim examiner the judge adjourned the matter to a date in early September.
