A judge has said that farmers now owed more than a cumulative €300,000 by a Shannon based Halal meat operator are being repaid on a ‘drip-fed’ basis.
Judge Alec Gabbett made his comment at Ennis Civil District Court after solicitor, Colum Doherty for Asba Meats Ltd said that his client intends to pay the 10 farmers €1,000 each over next four weeks.
In a letter handed up to Judge Gabbett, Mr Doherty has requested an 18 month time-frame to clear the total outstanding balance of €308,455.
In the letter, Mr Doherty has stated that “now that Asba Meats has moved past receivership, they are actively sourcing new contracts to stabilise cash flow. They remain fully committed to meeting their obligations to the remaining farmers.”
Requesting the 18 month time-frame Mr Doherty states that “we believe that this structured approach provides the most reliable path for the farmers to receive their full payments while allowing the company to return to operational strength”.
The letter states that Asba Meats and company director, Mr Tarequr Rahman Khan wish to have it noted “that they appreciate the regulator’s role in protecting the interests of the farming community and wish to formally submit a proposal for the resolution of these debts”.
Judge Gabbett said that effectively the payments to the farmers are “being drip fed out”.
The debt case is before the court after Agri-Food Regulator took an unfair trading practices (UTP) regulations case against Asba Meats Ltd and director, Tarequr Rahman Khan concerning 24 summons against Asba Meats and Mr Khan relating to owed of €576,386 at the outset.
Mr Doherty said that monies have been paid out already by Asba Meats and the current balance is €308,455.
The letter states that it “is it important to emphasise the ASBA Meats Ltd have recently emerged from a period of receivership following significant operational and financial difficulties.
The letter states that “during this challenging period, they have remained committed to their supplies, successfully clearing the debts of a substantial number of farmers on our original list”.
The information Mr Doherty provided to the court shows that Denis Heffernan of Loughcurra, Kinvara, Co Galway is currently owed €91,639 while Fintan Keane, Ballyashee, Kilnamona, Co Clare is owed €59,662.
The third highest amount at €47,563 is owed to Kieran Kelly of Moneen Lower, Kilrush, Co Clare.
Solicitor at Fieldfisher Ireland LLP, Evan O’Brien for the Agri-Food Regulator said that slight clarity is required on some of the figures Mr Doherty has presented to court.
However, Mr O’Brien said that he was consenting to the four week adjournment to allow the €1,000 be paid per complainant farmer.
He said: “My client will need to see a solid payment proposal with solid payments made to each complainant farmer after that.”
Judge Gabbett said the receivership concerning Asba Meats was a bit like Lannigan’s ball. He said: “I read that it was back on again.”
Mr Doherty said that all issues concerning the receivership have been resolved.
Judge Gabbett adjourned the case to March 13th for the payment of €1,000 per farmer to take place before then.
