Dáil Éireann - Volume 361 - 23 October, 1985
Written Answers. - Liquidation of Irish Shipping Limited.
Mr. Cluskey Mr. Cluskey
119. Mr. Cluskey asked the Minister for Communications if he will state in respect of the liquidation of a semi-State body (details supplied): (a) the date of the petition for liquidation; (b) the date on which a proposal for liquidation was first notified to his Department, at his request or on the initiative of the company; (c) the date of Government approval for the decision to liquidate the semi-State body; and (d) the total  amount of Government guarantees at the date of liquidation.
Minister for Communications (Mr. J. Mitchell) Jim Mitchell
Minister for Communications (Mr. J. Mitchell): The information requested by the Deputy is as follows:
(a) The board of Irish Shipping Limited petitioned the High Court to appoint a liquidator to the company on 14 November 1984 following a decision by the Government not to provide any further financial assistance for the company.
(b) The chairman and board of Irish Shipping Limited submitted a report to me dated 24 September 1984 on the financial position of the company which identified the immediate winding-up of Irish Shipping Limited as one possible course of action. In this connection, I would refer the Deputy to my reply to Parliamentary Questions on 20 February 1985.
(c) The Government did not take the decision to wind-up Irish Shipping Limited. At an extraordinary general meeting of the company called by the board of directors of Irish Shipping Limited on 14 November the Minister for Finance, as principal shareholder, agreed to a resolution by the board of the company to petition the High Court for the appointment of a liquidator on the grounds of insolvency.
(d) The liabilities of Irish Shipping Limited at the date of liquidation which were guaranteed by the Minister for Finance amounted to £39.5 million. By virtue of an understanding between the Government and Irish Shipping Limited the company's liability in relation to the acquisition of the Irish Spruce by Verolme Cork Dockyard was £8.5 million at the date of liquidation. The acquisition of the Irish Spruce was funded by a consortium of Japanese leasing companies and the vessel was operated by Irish Shipping Limited under a bareboat charter which was fully guaranteed by the Minister for Finance. The total amount guaranteed by the Minister in this connection at the date of liquidation was approximately £39 million, of which £8.5 million represented the Irish Shipping Limited liability.
Dáil Éireann 361 Written Answers. Liquidation of Irish Shipping Limited.