Paddy McKillen Jr has succeeded in having an examiner appointed to Skelligs Chocolate, offering the business a temporary shield from its creditors.
The company is still linked to Paddy Mc Killen Jnr despite reports recently that it was in a better position and no longer part of the problem with his wider hospitality group.
Seaclaidi Na Sceilge Teoranta, the company behind the business, is cash-flow insolvent with debts of circa €2.7 million including over €900,000 owing to the Revenue Commissioners, Dublin Circuit Court heard.
According to the Currency website the court heard that the company was profitable up to 2022 but has made a loss each year since then.
The court was also told market conditions and cost pressures are the source of the firm’s difficulties, particularly global inflation and supply chain disruptions post-Covid, including rising energy costs.
In November, a petition was sought to wind up the operating company linked to Paddy McKillen Junior.
At the time it was understood that the Dún Laoghaire firm Resolute Advisory applied to the High Court to have Seaclaidi na Sceilge Teoranta wound up.
In February, the 25 workers at the company based in St Finian’s Bay Ballinskelligs were told their jobs were secure and that future plans for the company included expansion.
Examinership is a court-supervised process allowing an insolvent company to restructure, offering protection from creditors for up to 100 days.