Receiver appointed to Asba Meats

A receiver has been appointed to Asba Meats by Tuffy Financial Services under the powers contained in a debenture for a loan instrument issued by Tuffy in December 2024.

The appointment of the receiver was not made through the courts, rather Deloitte was appointed by the lender under the powers contained in the debenture.

The Tuffy debenture is for a “fixed and floating charge” over the assets of Asba Meats. As there is a floating charge involved, the receiver has the power to take over all of the assets of the company and its business.

The receiver is, under Irish law, an agent of the company and not the holder of the debt, but it does not have any obligation or duty to continue trading or to try to save the business.

Disadvantage

The appointment of the receiver by this lender, Tuffy Financial Services, may put anyone else owed money by Asba Meats at a disadvantage, as the receiver's sole role is to get the debt repaid from the company’s assets.

Asba Meats has in recent weeks seen the commencement of legal proceedings launched against it by Athenry Co-operative Livestock Marts relating to monies owed to it by the processor.

It has also been involved in a long-running legal battle with Town and Country Meats Group over the non-payment of debt.

A petition to wind up the company, which was heard in the High Court earlier this month, was lodged by Dublin-based Dr Kashif Siddiqui, described as a creditor of the company.

In November 2024, the Agri Food Regulator secured its first conviction for a breach of unfair trading practices regulations against Asba Meats.

It remains unclear how much, if any, money the company owes to farmers.

The appointment of a receiver means there is only a short window for any other creditor to submit an application to the courts for an examiner to be appointed to the company.

If the receiver stands appointed for a period of three days, then the court is statutorily barred from hearing an examinership application.

The date on the notice of the appointment of the receiver is 15 September.