The High Court recognised the administration of Mercer Agencies Limited, a Northern Ireland company, and the appointment and powers of its joint administrators to act in Ireland. Mr Justice Michael Quinn said the recognition was needed to let the administrators pursue company assets and, if necessary, legal proceedings in the State without delay over their standing.
The ex parte application was made by the company through joint administrators appointed under the Insolvency (Northern Ireland) Order 1989. The court made the requested orders on 25 March 2025. Mr Justice Quinn gave his reasons in a judgment delivered on 7 May.
The administrators are pursuing the Northern Ireland procedure’s objective of achieving a better result for creditors as a whole than would be likely if the company were wound up without first being placed in administration. The court found sufficient equivalence between the administrators’ powers to collect company property and bring proceedings, and functions available to a liquidator under Ireland’s Companies Act 2014. It held that recognition was sought for a legitimate purpose.
The judgment recounted the administrators’ account of a claimed debt of USD$1,499,339.17 owed by Rath-Wood Home and Garden World Limited, whose registered office is in Tullow, County Carlow. The administrators also said company stock was held at Rath-Wood’s premises, some of it had been sold without the company’s consent, and arrangements had been made for Rath-Wood to continue selling stock and account to the company.
Those matters were described on an ex parte application. Mr Justice Quinn expressly cautioned that Rath-Wood had not participated or had an opportunity to respond, and that his description of the dealings did not determine any dispute between the companies. He said recovery proceedings or other measures to preserve or retrieve stock might still become necessary.
The court ordered that it and its officers act in aid of the High Court of Justice of Northern Ireland, Chancery Division, in the administration proceedings. It also directed that the order be served on Rath-Wood, which had not been represented at the hearing, and gave Rath-Wood or any other affected party liberty to apply to the High Court on notice to Mercer Agencies.