Luxembourg Investor Sues Galway Firm Over Alleged Effective Cancellation Of €2 Million Loan Note

A Galway-based company is being sued by a Luxembourg investor over the alleged effective cancellation of a €2 million loan note when it was converted into shares before the firm was sold off, the Irish Times reported. In Commercial Court proceedings, it is claimed Éire Composites, which designs and manufactures lightweight high-performance materials for the aerospace, marine and motor sectors, was bought by businessman Thomas Flanagan last November despite objections by Carlo Tassara Assets Management Ltd (CTAM), with registered offices in Luxembourg. CTAM, whose parent Carlo Tassara SpA invested €3.3 million in Éire Composites in 2007, says it is challenging an alleged effective cancellation of a €2 million loan note to the company by its conversion into shares, despite numerous objections (from CTAM). It is also seeking orders against three Éire Composites directors at the time of alleged conversion – William Costello, Patrick Feerick and Conchur Ó Brádaigh – in relation to personal guarantees provided over liabilities in event of default on loan repayments. CTAM’s proceedings are also against Mr Flanagan who, it is alleged, bought the firm in the full knowledge of the loan note conversion dispute. Read more.