New owners for Irish poultry processor Cappoquin

The Irish High Court has cleared the way for the latest takeover of processing company Cappoquin Poultry by the Producers Co-operative Society and a group of outside investors.

Cappoquin Poultry went into examinership in August 2012 with debts of €6m, putting at risk some 140 jobs and leaving a string of creditors.

In mid-November, the examiner, Michael McAteer of Grant Thornton, agreed a deal whereby unsecured creditors would be paid 2.5 cents in the euro. Former owners and directors Thomas Vaughan and Perwaiz Latif (of Derby Poultry) objected, but failed in their High Court challenge to the deal.

The new owners have now taken over the day-to-day running of the 90-year-old Co Waterford business, announcing that 70 of the 140 jobs in the business are to be retained.

Dr Sean Brady and Raymond O’Hanlon are the new chairman and managing director respectively, with Eddy Keane and Paddy Meaney being the poultry growers on the board.

“We believe that, by strengthening our sales and marketing function and by streamlining the business we can create a solid foundation which will allow us to consolidate our position in both the Irish and British markets,” said Mr O’Hanlon, who comes to the company with 20 years’ experience in business turnaround. “We see it as an attractive business with good growth prospects.”

Dr Brady, who has had senior managerial positions in several other Irish food companies, said that the new Cappoquin aims to significantly expand the export of halal chicken into the UK and Europe.

The feed mill, Henry Good, which was owed almost €4m and was among the biggest unsecured creditors, continues to supply the company on a pre-paid basis.