High Court directs sale of Buzreel Ltd assets to Midland Web Printing Ltd

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

The High Court directed provisional liquidator Neil Hughes to sell Buzreel Ltd’s assets and undertaking to Midland Web Printing Ltd. Mr. Justice Hogan delivered judgment on 1 May 2014, confirming that Midland Web’s bid was valid. The direction specified the sum in its offer letter dated 28 April 2014.

Neil Hughes had been appointed provisional liquidator on 2 April 2014 by McGovern J., on Midland Web Printing Ltd’s petition. Buzreel Ltd owned the Buy and Sell classified advertising business, comprising five weekly titles and an online presence. Publication ceased after the appointment.

Midland Web initially offered €303,000, exclusive of VAT, and became preferred bidder on 10 April 2014. That status was withdrawn when a bank letter showed its funding depended on encashing investments and would take three to four weeks to clear.

Neil Hughes instead sought approval, by a motion dated 15 April 2014, for a sale to Demirca Ltd. Its bid was lower, but it had supplied satisfactory proof of immediate funding.

James Fanning said the liquidator had been told about the delay and that an employee of Messrs. Hughes Blake had confirmed the investment portfolio would be accepted as proof of funding. Neil Hughes said in an affidavit dated 22 April 2014 that he had not known how long clearance would take. The liquidator also denied the alleged assurances.

At the hearing on 24 April 2014, Mr. Justice Hogan gave both bidders a final opportunity to submit unconditional sealed bids. He said urgency prevented an oral hearing to resolve the disputed assurances, while Demirca Ltd also deserved an opportunity to improve its offer. As a condition of that order, Midland Web undertook to bid at least €312,000 on the re-tender.